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Forrester Research currently predicts that online retail will grow at a steady 19 percent year-over-year growth rate, from $95.7 billion in 2003 to $229.9 billion in 2008, generating a tenth of US total retail sales by 2008.

Forrester's "US eCommerce Overview: 2003 To 2008" suggests that food and beverage, sporting goods, and home goods will grow the fastest, actually outperforming categories like books and travel that currently dominate the segment.

Forrester also predicts that almost five million new US households will shop online in each of the next five years, with a total of 63 million US online shopping households in 2008.
KC's View:
There will be a lot of skeptics about the food and beverage prediction, but we believe it. This category will break out, especially as the numbers of retailers offering online shopping options increases. It will become just one more component in America's supermarkets, as familiar and easy to use as a pharmacy, a bakery, an ATM, or a frequent shopper card.