• In July, on a seasonally adjusted basis, the NAB Online Retail Sales Index recorded a drop in growth (-1.0% mom) on the month prior (June revised 2.2%, was 2.6%).
• Strong growth continued in year-on-year terms (16.2% yoy), albeit June was revised lower (previously 16.2%).
• Growth contracted for all categories in the month, except takeaway food, and department stores. Large sales category, homewares and appliances, which led growth in June, recorded the largest drop in July. The drop in growth was also worse than the overall for fashion, grocery and liquor, and games and toys. Department stores went against the broader trend with a strong acceleration in growth. This category continues to lead in year-on-year terms.
• All states recorded a fall in growth this month, but particularly the two largest sales states, NSW and VIC, along with the two territories. The states which recorded the strongest growth in June, also recorded the smallest fall in July. This was especially so for SA, with strong growth for department stores, grocery and liquor, and media offsetting other categories.
• The drop in growth was recorded in both metro and regional areas, with the result somewhat mixed by state. In NSW, metro areas lagged regional growth while in VIC, and SA, the opposite was observed.
• International retailers recorded growth this month, but this was more than offset by the drop in domestic retailer sales.
• NAB estimates that in the 12 months to July, Australians spent $64.88 billion on online retail, a level that is around 14.6% of the total retail trade estimate (June 2025, Series 8501, Australian Bureau of Statistics), with the 12-months-to growth (13.9%) continuing to accelerate.

NAB Chief Economist, Sally Auld commented:

In July, there was a partial retracement of last month’s rapid growth. It is worth noting that as this fall did not entirely erase gains made in June, online sales in both 3-month moving average and year-on-year terms, continued to grow. For our broader retail measure, the NAB Monthly Data Insights, we observed a slowing in the retail component (0.2% mom), but not a fall, albeit this was on a smaller gain the month prior.

Of note this month was the acceleration in growth of the department stores category. Growth was particularly strong for SA, WA, QLD and ACT. Against the broader state trend, VIC and TAS were the only two states to either slow or contract. The department stores category also indicates a strong contribution to growth in July from domestic retailers.

Get all the insights in the NAB Online Retail Sales Index (July 2025)