• NAB Online Retail Sales Index (NORSI) in July (+1.3% mom s.a.) was on par with June, from stronger growth in May (1.7%). 12 months to growth accelerated in July, with sales up 18.8%. While slowing, trend online retail sales is still much stronger compared to the same period a year ago.
• ABS data on traditional retailers showed month on month seasonally adjusted sales grew 2.6% in June, substantially outpaced by NORSI in that month.
• We estimate that Australian consumers have spent around $26.88 billion over the 12 months to July 2018. This is equivalent to 8.5% of spending at traditional bricks & mortar retailers, as measured by the ABS in the 12 months to June 2018.
• Generally moderate acceleration for 5 of nine categories in July, with all except food catering maintaining double digit 12-months to growth. Fastest 12-months-to growth was recorded by Games and Toys stores, whose sales accelerated (36.3% July vs 24.6% 12 months to June). Department stores (20.8%) recorded the 2^nd fastest growth, but slowed from June (38.4%). Grocery and Liquor (20.3% vs 15.9%) was 3^rd fastest in 12 months to terms. The much larger sales category, Media (19.7% vs 24.5%) was 4^th, but also slowed. The largest spend category Homewares and Appliances (19.0% vs 8.5%) accelerated in the month, and the recent resurgence in Fashion continues, albeit with slightly slower growth (18.2%vs 19.3%). Smallest category Daily Deals (18.0% vs 14.5%) accelerated along with Personal and Recreational (16.7% vs 14.3%), while Food Catering slowed (6.9% vs 14.4%).
• SME merchants represent over 36% of all online sales. Seasonally adjusted SME sales jumped in July (2.4%, mom s.a.), outpacing large online retailers.

For further details, please see the attached document:

• NAB Online Retail Sales Index: July 2018 (PDF, 302kb)