CHART: Australian Retailers Are Starting To Gain On Online International Players

Australian retailers are starting to win a little ground against online retailers from overseas.

Domestic players are winning a greater proportion of total online revenue now with about 74% of online retail sales, according to the latest NAB Online Retail Sales Index.

“This share has been creeping higher in recent months as sales to international retailers have been impacted by the weaker Australian dollar,” says the NAB.

Growth of international online sales was sluggish at 0.3% in January compared with 1.6% for the domestics.

“It’s likely that the Australian dollar exchange rate will continue to be relevant in the mix of international and domestic sales – so keep a close eye on how the data reflects this going forward,” NAB says.

Overall Australia’s online retail spending increased 11.3% to $14.9 billion for the year to January 2014 and now represents 6.5% of traditional retail spending.

Despite a recent pickup in the traditional bricks and mortar retail sector, it was still outpaced by the improvement in online retail growth over the past three months.

However, recent online growth has been more subdued than the 20-30% growth rates recorded in earlier years.

From the note:

“A substantial gap now exists between the stronger growth in domestic online retailing, and the virtual stall in growth in international online sales, which is probably currency related.”

By category, results are mixed. The year-on-year strength in Media masks a slowdown over the past three months. Growth has continued for Electronic Games & Toys, Grocery & Liquor, Fashion, and Homewares & Appliances categories, but trends have been weaker in Daily Deals, Recreational & Personal Goods and Media.

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