Overview:

• At -0.8%(mom, s.a.), the NAB Online Retail Sales Index contracted in April , reversing growth in March (+0.8%,mom s.a.). Year on year growth slowed from a revised 10.5% in March (was 9.0%) to 6.9% in April. The revised trend estimate for online retail sales is now virtually flat (0.1%) .
• ABS data on traditional retailers showed month on month seasonally adjusted contracted in March (-0.1%), with year on year growth of 2.4%.
• We estimate that Australian consumers have spent around $22.37 billion over the last 12 months to April 2017. This is equivalent to 7.3% of spending at traditional bricks & mortar retailers, as measured by the ABS in the 12 months to March 2017.
• In line with the headline number, most categories slowed in April. Against the general slowing were Homeware and appliances (10.4% yoy Apr vs 8.7% yoy Mar), Games and Toys(14.9% yoy vs  8.2% yoy) and Daily Deals (4.4% yoy vs -3.8% yoy). Media (16.3% yoy vs 16.6% yoy) maintained strong growth while previous  growth lead, Takeaway Food, slowed considerably (11.3% yoy vs 24% yoy).   Personal and Recreational Goods (3.4% yoy vs 14.4% yoy), Department Stores (3.4% yoy vs 8.4% yoy) and Fashion (2.4% yoy vs 4.9% yoy) also slowed but remained positive, whereas  Groceries and Liquor (-1.6% yoy ) is smaller this April compared to last.
• SME sales represents just over a third of all online sales. While SMEs (-0.4%,mom s.a.) recorded less negative sales, the fall in growth was sharper given the March result (+1.5%, mom, s.a.). Year on year growth for SMEs (10.6%) is still stronger than Corporates (6.9%).

For further details, please see the attached document:

• NAB Online Retail Sales Index (PDF, 845kb)