• On a month-on-month, seasonally adjusted basis, the index remained unchanged in August (0.0%), following a slight upward revision to July’s contraction (-2.5%, was -2.6%).
• Growth accelerated marginally in year-on-year terms (9.8% y/y), with July revised down slightly (9.3%, was 9.4% previously published).
• By category, growth was mixed in August, with most categories except takeaway food and department stores improving on their July result. Having said that, a contraction in the two largest sales categories, homewares and appliances, and department stores, netted growth in most other categories. Despite the monthly contraction, department stores continued to record strong growth in year-on-year terms, well beyond all other categories.
• Growth was also mixed by state, so while growth for most states improved in August, a further contraction in VIC, along with ACT, netted growth from all other states, assisted by the near flat result for NSW. The biggest drag on growth for both NSW and VIC was homewares and appliances and department stores, but NSW recorded a larger increase for mid-sized categories like grocery and liquor, and personal and rec goods, which were either more moderate or contracting in VIC.
• Weakness in the two largest sales states this month was from results for metro areas. By contrast regional areas for NSW recorded strong growth, and for VIC, slight growth. In year-on-year terms, however, metro growth continues to outpace regional in all states except VIC and QLD.
• International retailers recorded growth in the month, but this was offset by a mild contraction for domestic retailers. While in year-on-year terms, domestic continues to outpace international, growth was flat for the former, while the latter rebounded. See charts 13 and 14, and table 4 for category growth and share.
• NAB estimates that in the 12 months to August, Australians spent $58.02 billion on online retail, a level that is around 13.5% of the total retail trade estimate (July 2024, Series 8501, Australian Bureau of Statistics), with growth (7.5%) slightly slower relative to the month prior.

NAB Chief Economist, Alan Oster commented:

In month on month, seasonally adjusted terms, growth was flat for online retail sales in August. The headline figure masks results by category and state, where there was general improvement from the July contraction. There were of course some exceptions to this, with WA slowing, and department stores reversing strong growth recorded in July. Even within the department stores category, by location, international retailers recorded growth in the month.

Also noticeable again this month is the continuation of a pattern where online sales of takeaway food, and grocery and liquor, have not moved in the same direction since April. Takeaway food, which had rebounded in July after a weak June, slowed considerably in August, albeit recording slight growth, while grocery and liquor rebounded after contracting in July. Given that we have observed a recent plateauing in the growth in their respective share of the index, it may be the case that direct substitution between these categories is occurring.

Get all the insights in the NAB Online Retail Sales Index (August 2024)