- Australian retail sales grew by 2.5% in the 12 months to May, according to data from the ABS.
- Analysis from Macquarie Bank suggests around 60% of that increase came from entirely from growth in online sales.
- Even with that enormous contribution, online sales only accounts for a fraction of total retail turnover.
Australian retail sales grew by just 2.5% in the year to May, according to data from the ABS, continuing to languish around levels well below those seen in recent years.
As seen in the chart below from Macquarie Bank, without the impact of online retail spending, that year-ended growth rate would have been significantly lower.
Based on Macquarie’s calculation, growth in online retail sales surged by close to 50% in the year to May, accounting for around 60% of total growth in retail turnover on a three-month moving average basis.
60% — a quite amazing statistic given it averaged under 5% of total sales over the past year.
It’s still a small share but it’s growing rapidly.
Given that services such as Amazon Prime are now available in Australia, one suspects the proportion of online sales will only continue to increase in the priod ahead as more Australians feel comfortable using it and similar online port holes.