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Online Shoppers Spend $2.95 Billion in the Second Week of December - Continuing Strong eCommerce Holiday Season

Report Shows Strong Revenue Numbers in Several Shopping Categories, a Rise in
Overall Shopping Satisfaction and an Increase in Shoppers Choosing Online
Channels

ROCHESTER, N.Y. and NEW YORK, Dec. 23 /PRNewswire/ — The eSpending report
from Goldman, Sachs & Co., Harris Interactive(R), and Nielsen//NetRatings
today revealed that online shoppers spent $2.95 billion during the second week
in December, an increase of 48 percent from 2002. The latest weekly report
brings the total spent online excluding travel to $13 billion this holiday
season, an increase of 46 percent over last year.

The eSpending report found that the product categories for apparel,
video/DVD, consumer electronics, toys/video games (hardware and software) and
books continue to be popular so far this season, measuring the time period
from November 1 to December 12.

Online shoppers spent $2.5 billion online buying apparel this holiday, an
increase of 35 percent over last year (see Table 1). The category took in $900
million in revenue during the last two weeks. Toys and video games (hardware
and software) rose to $1.6 billion in online spending during the same six-week
period, a rise of 27 percent from a year ago. The consumer electronics
category found success this season, with Internet shoppers spending $1.4
billion, showing an increase of 12 percent. The books category attracted
significant attention from online consumers, garnering $1 billion, an increase
of 33 percent.

Table 1
Popular Online Shopping Categories Ranked by Projected Revenue to Date

Projected Online Revenue in Millions Year Over Year
Category 11/1/03-12/12/03 (Growth)
Apparel/Clothing $2,463 (35%)
Toys/Video games (hardware and
software) $1,576 (27%)
Consumer Electronics $1,375 (12%)
Video/DVD $1,214 (89%)
Books $1,046 (33%)

Source: Goldman Sachs, Harris Interactive and Nielsen//NetRatings
eSpending Report, December 2003
Number of respondents = 7,178 online users

More Online Shoppers Buy via Web versus Brick and Mortar and Catalogs

Online shoppers report spending more of their holiday budget with
retailers’ online channels, choosing this option instead of their brick and
mortar stores. The eSpending Report found that through the week of December
12, shoppers spent 21 percent of their 2003 holiday budget online, up from 16
percent in 2002. Brick and mortar storefronts have experienced a decrease in
spending. Shoppers said they had expected to spend 72.9 percent of their
budget at brick and mortars in 2003, down from 76.8 percent last year.

Table 2
Online Spending vs. Stores and Catalogs, Ranked by Largest Points
Increase

2002 to 2003 Percentage Retail Channel 2002 (2003 Points Change)
Online 16.4% 20.5% (+4.1)
Catalog 6.7% 6.7% (0)
Brick and Mortar 76.8% 72.9% (-3.9)

Source: Goldman Sachs, Harris Interactive and Nielsen//NetRatings
eSpending Report, December 2003

Questions asked: For the entire 2002 holiday shopping season, what
percent of your budget did you spend in stores, catalogs
and online? For the entire 2003 holiday shopping season,
what percent of your budget did you spend in stores,
catalogs and online?
Total number of respondents: 7,189 in Year 2002, 7,178 in Year 2003

"This season we are seeing a continuing trend of consumers deciding that
shopping online is the way to go," said Lori Iventosch-James, director of
ecommerce research, Harris Interactive. "The increased reliance on Internet
retailers is having a noticeable impact on traditional retail outlets. With
extended shipping deadlines from online retailers, we expect this trend to
continue as people want to avoid the late shopping crowds."

Online Shopping Satisfaction Rises

During the 2003 shopping season through December 12, sixty-two percent of
online shoppers were satisfied with their overall shopping experience, a
four-point increase from 2002 (see Table 2). Less than seven percent were
dissatisfied, a one point decrease from 2002.

Table 3
Overall Online Customer Satisfaction Year to Year

2002 to 2003 Percentage Satisfaction Level 2003 2002 (Points Change)
Satisfied 62.1% 58% (+4.1)
Dissatisfied 6.8% 8% (-1.2)

Source: Goldman Sachs, Harris Interactive and Nielsen//NetRatings
eSpending Report, December 2003
Questions asked: For the entire holiday shopping season, please rate your
overall shopping satisfaction so far.
Total Number of respondents: 2002 - 7,189, 2003 - 7,178

"Online retailers have seen a strong season so far," said Abha Bhagat,
senior analyst, Nielsen//NetRatings. "The higher levels of customer
satisfaction and increased consumer spending online point to the fact that the
online channel is no longer a disruptive technology medium but another
mainstream channel through which retailers reach out to customers."

The eSpending Report by Goldman Sachs, Harris Interactive and
Nielsen//NetRatings is based on a weekly national survey of between 800 and
1,700 online shoppers randomly chosen from Harris Interactive’s online panel
of survey respondents. The eSpending report offers weekly intelligence on
online shopping and spending by market segment and also tracks consumer
attitudes and motivations that drive online shopping.

About Goldman Sachs

Goldman Sachs is a leading global investment banking, securities and
investment management firm that provides a wide range of services worldwide to
a substantial and diversified client base that includes corporations,
financial institutions, governments and high net worth individuals. Founded in
1869, it is one of the oldest and largest investment banking firms. The firm
is headquartered in New York and maintains offices in London, Frankfurt,
Tokyo, Hong Kong and other major financial centers around the world.

About Harris Interactive(R)

Harris Interactive (http://www.harrisinteractive.com) is a worldwide market
research and consulting firm best known for The Harris Poll(R), and for
pioneering the Internet method to conduct scientifically accurate market
research. Headquartered in Rochester, New York, U.S.A., Harris Interactive
combines proprietary methodologies and technology with expertise in
predictive, custom and strategic research. The Company conducts international
research through wholly owned subsidiaries-London-based HI Europe
(http://www.hieurope.com) and Tokyo-based Harris Interactive Japan-as well as through
the Harris Interactive Global Network of local market-and-opinion-research
firms, and various U.S. offices. EOE M/F/D/V.

To become a member of the Harris Poll Online(SM) and be invited to
participate in future online surveys, visit http://www.harrispollonline.com.

About Nielsen//NetRatings

Nielsen//NetRatings is the global standard for Internet audience
measurement and analysis and is the industry’s premier source for online
advertising intelligence with its NetView, AdRelevance, @Plan, WebRF, LemonAd,
MegaPanel and SiteCensus services. Covering 70 percent of the world’s Internet
usage, the Nielsen//NetRatings services offer syndicated Internet and digital
media research reports and custom-tailored data to help companies gain
valuable insight into their business. For more information, please visit
http://www.nielsen-netratings.com.

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