The NAB yesterday released its online retail sales index, which was up 0.3% in September.
That’s a better result than what we’ve seen in the ABS retail sales data of late, but what the NAB data shows starkly is that bricks and mortar retailers are losing their relevance – and losing it quickly.
This trend seems to highlight the point Gruen Planet’s Todd Sampson (also CEO of Leo Burnett) made yesterday when he said, “The digital meteorite has already hit the majority of businesses in our country and around the world and most of them are already dead. They just don’t know it yet.”
Obviously no one hopes that is true and with rates at generational lows, the RBA is doing what it can to make this not so.
But when you can buy books, music, groceries and almost anything else off your smartphone, bricks and mortar retailers are under pressure.