If it wasn’t already obvious, Australians are pretty into their online shopping. In May, our total online spend over 12 months hit nearly 20 billion smackers. Huge.
The latest NAB online sales index showed an increase of 2 percent in May, making the increase over the year an impressive 13.2 percent, or an estimated $19.9 billion in total.
NAB also estimate that online sales now make up 6.7 percent of traditional retail sales, a number that’s not going to stop growing anytime soon.
As you can see, the growth in bricks and mortar retail stores is practically flat-lining compared to the online numbers. The impressive results are said to be due to huge growth in food, fashion, media and games retailing.
The report reads:
“A key driver of the overall result was fashion sales, which expanded rapidly (21.1% yoy vs 8.6% yoy in April).
Sales growth also improved faster in games and toys (41.6% yoy vs 16.2% yoy), department and variety stores (6.6% yoy vs 3.3% yoy), personal and recreational (8.4% yoy vs 7.5% yoy), and Daily Deals (3.2% yoy vs -8.3% yoy).
Sales slowed in Food Catering (39.1% yoy vs 50.3% yoy), Groceries and Liquor (6.3% yoy vs 8.3%), media (26.3% yoy vs 27.3% yoy). The largest spend category, homeware and appliances contracted (-1.7% yoy vs 0.4% yoy), though this slowdown was not enough to counter the growth in all other segments.”
Furthermore, smaller online retailers saw the fast growth in the history of the survey, increasing by 22.7 percent on the year. Smaller merchants now make up over a third of all online spending.
The official sales report for bricks and mortar stores is set to be released on Tuesday. No doubt traditional retailers will be looking to see whether the growth is consistent across the two platforms.