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Online retailers see rise in sales

SAN FRANCISCO -- Online retailers hope the convenience of the Web, plus discounts and deals, spur still-nervous shoppers to spend more online this holiday season -- even as traditional retailers brace for mediocre sales.

Internet analysts at comScore Inc. expect online retail revenue to rise 3 percent to $28.8 billion for the months of November and December. That includes the Web sites of traditional retailers, such as Macy's, but excludes auctions, travel and large corporate purchases.

Meanwhile, U.S. holiday retail sales -- excluding online -- are expected to drop 1 percent from last year, according to the National Retail Federation, the largest retail trade group.

Online estimates and data-gathering methods vary, but e-commerce analysts and Web retailers agree: This year can't possibly be as bad as last year, when the shock of the financial meltdown was still fresh. ComScore charted a 3 percent drop for Web retail that holiday season -- the first such decline since it started tracking the category in 2001.

Big retailers such as Toys R Us Inc. and Best Buy Co. also are using the Web.

Analysts also think consumers will be spending more time perusing sites with coupons and deals, comparing prices and reading reviews.

Paul Ryder, Amazon's vice president of consumer electronics, said that the economy seems more stable now than it did a year ago, when reluctant shoppers caused a bit of retailer panic.

"This season is not like that," he said, "but I think every retailer recognizes that customers are watching their pennies."

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