Posted on: Saturday, September 15, 2001

The September 11th attack
Online buying falls sharply

Bloomberg News Service

LOS ANGELES — Internet sales at U.S. online retailers are recovering from a steep decline the day of the deadliest terrorist attack in U.S. history, though they're still about two-thirds of normal, a Web research company said.

Online sales Thursday totaled $63.4 million, or about 68 percent of the average on Thursdays during recent weeks, said BizRate.com Inc., which tracks online commerce.

Shopping on the Internet plunged Tuesday, when the World Trade Center and the Pentagon were struck by hijacked commercial aircraft. Many shops closed and people stayed home, trying to get news and watching television images of the attacks. Internet sales that day plummeted to $56.3 million, or about 58 percent of the almost $97 million they averaged in preceding weeks, according to BizRate.com figures.

"Tuesday was as it should have been: a very poor sales day," said Martin McClanan, chief executive of RedEnvelope Inc., a seller of gifts on the Internet and through catalogs. He said retailers believe it may take seven to 10 days before sales return to normal.

"We were roughly 35 percent of what we expected for the day," he said.

Sales have crept back in recent days, he said.

Juliane Hearst, general manager of research for L.A.-based BizRate.com, said online sales may fully recover in the next two weeks baring unforeseen circumstances.