Dec. 24 (Bloomberg) -- U.S. Internet sales rose at the slowest pace on record as discounts cut revenue in the final days of the holiday shopping season.

Online spending from Nov. 1 through Dec. 21 increased 19 percent from a year earlier to $26.3 billion, Reston, Virginia- based ComScore Inc. said yesterday in a statement. Sales growth trailed last year's 26 percent. A gain of 25 percent last week wasn't enough for holiday sales to meet Comscore's forecast of 20 percent growth

Consumers limited spending this year as gasoline and food prices rose and mortgage defaults increased. The Reuters/University of Michigan final index of consumer sentiment for December dropped to 75.5, the lowest since October 2005.

``This weekend will reveal that it was pretty strong, but not enough to make up for the three weeks of pretty lackluster performance,'' Fred Crawford, managing director at AlixPartners LLP, said today in an interview with Bloomberg Radio.

More U.S. consumers delayed purchases until the final weekend before Christmas, Crawford said.

They also bought lower-priced items this year, Bill Martin, chief executive officer of ShopperTrak RCT Corp., said today in a Bloomberg Television interview.

ComScore hasn't recorded growth of less than 20 percent since 2002, when it began reporting online sales figures.

Wal-Mart, Best Buy

Wal-Mart Stores Inc., Best Buy Co. and Circuit City Stores Inc. offered discounts of 50 percent or more and promoted savings for in-store pickup of products purchased online to attract shoppers during what may be the worst holiday shopping season in five years. The peak period for Internet purchases has passed, ComScore Chairman Gian Fulgoni said in the statement.

``However, with some online retailers offering deliveries before Christmas for orders placed by Dec. 22, and in-store pickup available for orders placed on Christmas Eve, we expect to see above-average growth rates,'' Fulgoni said.

Sales rose 25 percent in the five days through Dec. 21 from the same period a year earlier, ComScore said.

``Online has done well considering the tough economic spending situation,'' said Larry Freed, chief executive officer of online research firm ForeSee Results Inc. in Ann Arbor, Michigan.

Gasoline Prices

Shoppers are grappling with $3-a-gallon gasoline and consumer prices that rose the most in more than two years in November. The National Retail Federation in Washington said sales may increase 4 percent this November and December, the smallest gain in five years.

Laverne Chamberlain, 60, said she cut back on spending this year by about 60 percent. The Atlanta resident said she's reluctant to buy toys for her kids because of safety concerns. She's considering a digital camera for her husband, if the price falls enough on Monday.

``It's not like I have to have it, so we'll see if it's good on Monday,'' she said. ``If it's good on Monday, then he'll get a camera.''

U.S. retailers' shares dropped during the holiday season, with the Standard & Poor's 500 Retailing Index falling 10 percent since the start of November through Dec. 21, compared with a 4.2 percent decline by the S&P 500.

Amazon.com Inc., the world's largest online retailer, fell 25 cents to $91.01 at 1:00 p.m. in Nasdaq Stock Market composite trading. EBay Inc., the largest global auctioneer, fell 13 cents to $34.17. Wal-Mart advanced 53 cents, or 1.1 percent, to $48.74 in New York Stock Exchange composite trading.

Shopping Delays

Surveys show consumers are completing their holiday gift buying later this year than in the past three seasons at least, said Michael Niemira, chief economist of the International Council of Shopping Centers in New York. Eighteen percent of consumers surveyed said they finished their holiday shopping by Dec. 16.

Spending through Web sites, which makes up more than 3 percent of all retail sales, may climb to $29.5 billion in November and December, ComScore estimated. That's a slower pace than the 26 percent growth in online sales during the holidays in 2006.

To contact the reporter on this story: Mark Clothier in Atlanta at mclothier@bloomberg.net.

Last Updated: December 24, 2007 13:50 EST