Online retail sales continued to grow at a frenzied pace in November, according to new NAB data that should serve as a warning to giants like Myer whose websites still fail.
This morning’s NAB Online Retail Sales Index showed how non-seasonally adjusted November sales rocketed on a combination of Christmas shopping, and an increasingly technology-savvy population.
Sales for the year rose to $14.6 billion, up 10.7% year-on-year.
Importantly for Bernie Brookes and Myer, online sales in the Department and Variety Stores category rose 11%. Last week, Brookes tried to talk down the impact of a week-long post-Christmas website outage, stating that online sales accounted for only 1% of Myer’s business.
The $14.6 billion of online sales for the year represents only about 6.4% of turnover at traditional “bricks and mortar” retailers, but the trend is evident.
On a 3-month smoothed basis, in November online sales grew almost three times as fast as traditional retailing at 1.53%. From NAB:
“The improved growth trend for online retail sales reflects almost uniform improvement in conditions at the category level.
In year-on-year terms, the rate of growth was up to +10.7% – faster than that observed in some recent results.
Particular strength was observed in Media (+28%), and Groceries and Liquor (+16%).”