Online sales top $14bn in year to Jan
Australians spent $14.9 billion online in the year to January, as online sales continue to outstrip traditional retail in terms of growth, according to a survey by the National Australia Bank.
NAB's online retail sales index recorded an increase of $1.9 billion, or 11.3 per cent, in the twelve months to January compared to the previous year.
Groceries and liquor led year-on-year growth with a 27 per cent improvement, followed by electronic games and toys with an increase of 22 per cent and media with 18 per cent.
Daily deals and personal and recreational goods experienced the weakest growth, NAB said.
Online sales were equivalent to around 6.5 per cent of traditional retail spending, up from 5.8 per cent for the same time last year.
The survey also pointed to "a substantial gap" between growth in sales originating domestically and overseas.
Online sales originating offshore have virtually stalled in recent months, the survey noted, with the seasonally adjusted three-month moving average growth at just 0.3 per cent.
The slowdown was attributed to the weaker Australian dollar. (probably get weaker!!!)
By comparison, domestic retailers continue to control the largest share of online sales, which has edged marginally higher to around 74 per cent of the market.
NAB Chief Economist Alan Oster said that despite a recent pick-up in the traditional retail growth, it was still outpaced by the improvement in online retail.
"With the improvement over recent months, online sales have returned to growth rates far exceeding traditional retail sales," he said.
NAB’s retail sector head, Tiernan White, said domestic retailers were increasingly developing a quality online presence alongside their traditional bricks and mortar offering.
"The department and variety stores category recorded the highest share of total online expenditure in the year to January at 34 per cent, followed by homewares and appliances with 17 per cent share of spend and groceries and liquor with 15 per cent share of spend," he said
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