NAB Index: Online Sales Are Smashing Traditional Retailers But Growth In Australia Is Slowing

Getty / Dan Kitwood

Australian online sales lifted again in June with expansion across most categories, according to the NAB Online Retail Sales Index.

Online retail was 0.9% higher in June compared to May and 9.5% higher compared to a year ago.

In the bricks and mortar world, Australian Bureau of Statistics data showed negative comparable sales growth at traditional retailers in May to be 0.3% lower than April and only 3.9% higher than a year ago.

However, online growth rate has been slowing gradually.

“Since we started reporting the index in 2010, the average growth rate has been 1.6% monthly and 21% annually, significantly higher than recent numbers,” the NAB says.

In dollar terms, Australians spent an estimated $15.5 billion on online retail in the 12 months to June 2014.

This is equivalent to 6.6% of spending at traditional bricks and mortar retailers as measured by the ABS, (excluding caf├ęs, restaurants and takeaway food, to create a like-for-like comparison) in the 12 months to May 2014.

Online sales growth expanded year on year in almost all categories in June.

Growth improved in Electronic Games (22%), Groceries & Liquor (19%), Department & Variety Stores (10%), Fashion (8%) and Homeware & Appliances (8%). Daily Deals saw its first positive growth in 2014, to be 3% higher than a year ago.

While sales continue to grow in Media, it is expanding at a much slower rate (3%).

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