Online sales remain subdued in August 2016

• While the NAB Online Retail Sales Index increased 0.5% (mom, s.a.) in August, year on year growth continued the slowing evidenced in the past couple of months. The revised trend estimate for online retail sales is still slowing, currently at 0.5%, down from 0.9% in June.

• ABS data on traditional retailers showed month on month seasonally adjusted was unchanged in July (0.0%) with year on year growth of 2%.

• We estimate that Australian consumers have spent around $20.6 billion over the last 12 months to August 2016. This is equivalent to 6.9% of spending at traditional bricks and mortar retailers as measured by the ABS in the 12 months to July 2016.

• Key categories to slow in August were Food Catering (26% yoy vs 48.5% yoy), Media (24% yoy vs 33.9% yoy) and Games and Toys (18% yoy vs 36.4% yoy). Department and Variety Stores (-0.5% yoy vs -5.8% yoy) contracted, with further deterioration observed in Daily Deals (-8.4% yoy vs -5.3% yoy).

• Personal and Recreational Goods led year on year online growth in August (26.6% yoy vs 22.4% yoy in July).

• Sales growth improved for Fashion (11.1% yoy vs 9.9% yoy), Groceries and Liquor (7.8% yoy vs 1.4% yoy) and Homeware and Appliances (3.5% yoy vs 1.6% yoy).

• SME sales represents just over a third of all online sales. SME sales grew strongly in August, with seasonally adjusted monthly growth estimated at 8%. Year on year growth for SMEs (24.3%) outpaced Corporates (11.9%).

For further details, please see the attached document.

• NAB Online Retail Sales Index:  August 2016 (PDF, 301kb)

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