STRICTLY BUSINESS: GROWING INTEREST IN CYBERSPACE SHOPPING

Cyberspace shopping isn't mainstream -- yet.

A recent survey conducted by MasterCard International for the National Retail Federation indicated a growing interest in on-line shopping.

Some 19 percent of consumers already have accessed the Internet, and another 12 percent say they will within the next year.

Of that group, 84 percent of the people currently "surfing" the World Wide Web think they are at least somewhat likely to purchase items over the Internet this year.

Internet commerce, however, is clearly in its infancy. Only 1 percent of U.S. consumers are buying items on-line, but with a third of American consumers going on-line within the next year, on-line shopping is likely to grow.

This could have an impact on the retail industry.

According to the MasterCard/NRF survey, 60 percent "surf" the World Wide Web, where shopping is conducted.

Consumers appear clear about what they do and do not want to purchase over the Internet.

According to the survey, consumers are most interested in purchasing items they "already know" or items they can "define exactly what they want." The most popular item bought over the Web is computer software, followed by information, entertainment and computer hardware.

Flower delivery services and travel agencies, which have traditionally offered their services by telephone, show the beginning of successful selling over the Internet.

Most on-line buyers described their expenditure over the last 30 days in either the $20 to $50 range, or the $100 to $200 range. But, a few buyers spent more than $500 on the Internet during the past month.

The Internet has some advantages, say consumers who participated in the survey: 24-hour shopping, purchasing from anywhere in the world, shopping at home, time savings, privacy and easy comparison shopping.

There are some concerns:

Credit card fraud is a concern to a large segment of the population. Even though consumers know they are only partially liable (usually up to $50) if their card is used fraudulently, they want to be guaranteed the Internet is secure.

The legitimacy of merchants is also a security concern. Anyone can get on the Internet, and anyone can be a merchant. This concern may cause some consumers to limit their purchases to retailers with local stores or regional/national name recognition.

No buyer explosion...yet

The Internet may be seen by some retailers as an opportunity to expand their market reach. It offers retailers the opportunity to interact with a many consumers in their own homes.

Despite the growth potential of commerce on-line, the study concluded two things must happen before an explosion of Web commerce occurs.

-- The Web must be marketed by retailers and financial institutions as a safe, effective means for purchasing.

-- A broader base of consumers must become more experienced in using the Internet.

Many consumers still see the Internet as a way to gather information or to contact colleagues or friends rather than to shop.

"Consumers still view local retail locations as an easy and convenient means to obtain customer service," said Charles Spatola, vice president, Retail Markets, MasterCard International. "They want the option of taking their problems directly to the retailer and receiving help, face-to-face. Convenience coupled with traditional retail service will be strong selling points for retailers on-line."

Retailers most likely to be affected by shopping over the Internet include those that sell standardized, commodity products; products requiring little customer service; expensive products that might be discounted heavily over the Internet; and items by phone or mail order, such as CDs, records, stereo equipment, kitchen appliances, automobile parts and travel reservations.

Today, traditional retail is not being cannibalized to any great extent by on-line shopping.

Mail-order and/or telephone order retailers could be most affected, if they choose not to go on-line, but although this segment of retailers stand to lose business to Internet shopping, they are also best positioned to take advantage of the on-line opportunities.

A demographic profile of Internet users reveal that some 75 percent of those who have accessed the Internet are male, 55 percent of Internet users have a college degree, 40 percent have a household income of $50,000, the median age of users is 34, 60 percent are married and 33 percent have children. Almost half of frequent Internet users are entrepreneurs and/or students.

Cold weather slows gamblers

Bitter cold weather was blamed for a drop in paid admission and revenue at Missouri's eight riverboat casinos in January.

The casinos had paid attendance of 1.6 million and revenue of $40.7 million in January, down from 1.7 million visitors and $43.2 million in revenue in December, the Missouri Gaming Commission reported Wednesday.

"We can definitely track attendance to the bitter cold and snowbound days," said a spokesman for the gambling industry. "We feel confident our numbers are where they should be with the kind of weather we had."

Meanwhile, in Illinois, paid attendance remained about the same in December and January, with more than 1.9 million visitors. Revenues dropped from $96 million in December to $94.8 million in January.

December totals were based on 10 casinos. The Silver Eagle Casino at East Dubuque closed in late December and remains "temporarily closed."

Attendance and revenues

January attendance and revenue for Missouri casinos:

-- Harrah's North Star, North Kansas City: 355,000, $10.4 million.

-- Casino St. Charles: 428,000, $10.4 million.

-- Argosy, Riverside: 257,000, $6.5 million.

-- Admiral, St. Louis: 263,000, $5.3 million.

-- Sam's Town, Kansas City: 213,000, $5 million.

-- Casino Aztar, Caruthersville: 54,000, $1.6 million.

-- Frontier Casino, St. Joseph: 61,000, $1.6 million.

Totals: 1.6 million visitors, $40.8 million.

January attendance and revenue for Illinois casinos.

-- Grand Victoria, Elgin,: 308,000, $18.7 million.

-- Harrah's North Star, Joliet: 261,000, $17.2 million.

-- Empress Casino, Joliet: 264,000, $16.5 million.

-- Hollywood Casino, Aurora: 246,000, $13.4 million.

-- Casino Queen, East St. Louis: 312,000, $9.8 million.

-- Par-A-Dice Riverboat, E. Peoria: 185,000, $7.4 million.

-- Alton Belle, Alton: 170,000, $5.4 million.

-- Players Riverboat, Metropolis: 125,000, $5.3 million.

-- Casino Rock Island: 46,000, $1.1 million.

-- Silver Eagle Casino, East Dubuque: Temporarily closed.

Totals: 1.9 million visitors; $94.8 million.