Online holiday sales are expected to rise 8 percent this year

 Forrester Research Inc. predicts this holiday season to be successful for U.S. online sales with its expected 8 percent growth, with mass market retailers who can offer discounts performing best. It is estimated that online retail sales in November and December are expected to reach $44.7 billion this year, compared with $41.4 billion a year ago. Forrester stated in its report that despite the lingering effects of the global financial crisis, the online space remains the retail industry's growth engine. Last year the total sales during the holiday season were the worst during the nearly four decades after consumers cut back on spending in a global financial crisis.

The growth of online sales measured by only 5 % last year breaking a multiyear streak of double-digit gains, according to Forrester. The retailers are ready to another tough holiday season this year because of rising unemployment and decreased access to credit which consumers are facing. Even the 1 % decrease is forecasted by the National Retail Federation. In the past year, consumers have traded down to shop at Wal-Mart Stores Inc and other mass merchants. Wal-Mart’s online offering was really expanded with health and beauty products. Recently it started a price war with Amazon.com Inc, by slashing the price of highly anticipated hardcover books. By the way, Amazon forecast that sales during the holiday quarter could far exceed Wall Street's early estimates.

While online sales are expected to rise, they still account for a small portion of total holiday sales. According to the National Retail Federation, holiday retail sales totaled $441.97 billion last year.