Nov. 6--Online shopping, long a bright spot in retail, has hit a bump in the cyber road.

E-commerce retail sales, excluding travel, fell 2 percent to $29.6 billion in the third quarter compared to a year ago, marking the first time on record that online sales have tumbled two quarters in a row, according to a report released Thursday from ComScore Inc.

"The good news is that these declines may finally be in our rear view mirror, as we anticipate marginally positive growth for the fourth quarter," said Gian Fulgoni, chairman of the Reston, Va.-based online research firm.

Online sales had been growing at a double-digit pace until last year when the financial crisis dampened consumer demand. One critical step merchants can take to turn around sales, according to the report, is to offer free shipping.

While free shipping offers have been around for years, the tactic has gained prominence during the recession. The percentage of online sales transactions that included free shipping increased to 42 percent in the third quarter of 2009 from 31 percent in the first quarter of 2008, according to ComScore.

Retailers that avoid free shipping deals this holiday season will be at a significant disadvantage, Fulgoni said.

The challenge for merchants, already under profit pressure, is to keep costs down. The way to do that is to limit free shipping to specific price thresholds or certain time periods, according to a separate report released this week from Cambridge, Mass.-based Forrester Research.

Forrester predicts online sales will surge 8 percent for the months of November and December combined from the same period a year ago, as deal-hungry shoppers go to the Web to search for the best prices. Online merchants also could get a boost if traditional retailers' decision to cut back on inventory and holiday staffing leads to short supplies in the stores -- and short tempers among shoppers.

Hanig's stepping into Clybourn corridor: Hanig's Footwear plans to open a 3,800-square-foot store at 1000 W. North Ave., the former site of Transitions book store and cafe.

The shoe store is slated to debut in spring 2010, according to Stone Real Estate Corp., the real estate broker that represented Hanig's. It will be the Chicago shoe merchant's sixth store.

Veterans Day deal: Retailers will latch onto just about any holiday as an excuse for a sale. Veterans Day, which falls on Wednesday, is no exception. Kudos to deal-watching blog BargainBabe.com for compiling free offers that apply only to the men and women who are serving or have served in the military. Among the many deals listed: a free meal at restaurants including Applebee's and McCormick and Schmick's, free tickets to the Rose Bowl and free bridal gowns (on a first-come, first-served basis) from a bridal salon in Massachusetts.

smjones@tribune.com

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