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(Continued)     The RFS Newsletter, May 27, 2006. Page 6

After the travel industry, the largest categories in 2006 will be computer hardware and software, autos and auto parts, apparel, accessories and footwear. In 2006 the pet supplies, cosmetics and fragrances categories are expected to experience growth rates over 30 percent, more than any other categories. Increasingly, retailing is becoming a multi-channel activity. With customers jumping online to compare prices, find gifts and research high-ticket items, retailers are using websites not only to sell online, but to increase sales offline.

The report found that over two-thirds of retailers have consistent pricing across channels and nearly half let customers buy and redeem gift cards online or in stores. "Retailers have been focusing on integrating their websites and stores to better serve their customers, which is paying off for companies in the form of higher sales," said Scott Silverman of Shop.org.

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