The Telecommunications Economy: Retail

The top 100 retailers in the world are earning more than $40 billion in profits and growing more than 20% a year as an increasing number of consumers shop online using high-speed Internet connections, according to a 2006 InternetRetailer.com article. 

According to a 2005 report by eMarketer, broadband users will be responsible for nearly 90% of all online retail purchasing. 

Online shoppers spent a total of $30.1 billion during the 2005 holiday season, up 30% from 2004, according to the eSpending Report from Goldman Sachs, Nielsen//NetRatings and Harris Interactive.

In August 2005, 225 Burger King restaurants nationwide installed broadband connections to provide customers the option of paying with a credit or debit card. According to an August 2005 article published by SpaceDaily.com, such automation will dramatically decrease transaction times, improve customer service, and ultimately result in significantly increased revenues for
franchise owners. 

More than one-third of all U.S. households have a broadband connection; a key factor driving the surge in online purchases according to a 2005 report by eMarketer. The report notes that 64% of broadband users buy products or services online, as compared with only 49% of dial-up users. 

Owing to the increase in broadband availability, online sales at FTD Group doubled in 2005 to $215.5 million, representing 49.2% of the company's total sales, according to a 2005 InternetRetailer.com report. This double-digit growth has offset dwindling revenues from FTD's "brick-and-mortar" network. 

To download a PDF version of this fact sheet, please click here.