• In May, on a seasonally adjusted basis, the index continued to record growth (0.7% mom), albeit slowing slightly on the month prior (April unrevised 1.1%). 
• Growth accelerated in year-on-year terms (15.4% yoy), trending higher over the recent period.
• Growth for most categories in the month, except large sales category, homewares and appliances, and takeaway food. The two categories which contracted in April, fashion, and games and toys, rebounded in May, leading growth in the month. All remaining categories recorded slower growth or were unchanged on the month prior. In year-on-year terms, the department stores category continues to outpace other categories, with a slight acceleration in May.
• Mixed results were observed this month by state, with a strong rebound for both VIC and NT. ACT was slightly slower, and the post-cyclone induced rebound in QLD eased, with all other states contracting, including TAS for a second month. Strong growth for VIC, above the national average, in fashion, department stores and grocery and liquor, and smaller negative for homewares and appliances boosted the result for that state, while SA was particularly weak in grocery and liquor.
• Both metro and regional sales accelerated in yoy terms, with regional slightly outpacing metro, with NSW factoring heavily in the result. The series look to have converged again after diverging earlier in the year, due to slower regional growth.
• Growth slowed for domestic retailers in the month, outpaced by international, which accelerated.
• NAB estimates that in the 12 months to May, Australians spent $63.27 billion on online retail, a level that is around 14.3% of the total retail trade estimate (April 2025, Series 8501, Australian Bureau of Statistics), with 12 months to growth (13.2%) continuing to improve.

NAB Chief Economist, Sally Auld commented:

Online retail sales growth slowed in May (0.7% mom, s.a.), and was a little slower relative to our broader retail measure in the NAB Monthly Data Insights (1.1% mom). For online, this deceleration follows a fairly strong April, and it’s worth noting that the year-on-year growth in online retail sales continues at a strong pace. Our data also suggest that the online share of total retail continues to grow. Along with the rebound in spend on fashion in May, there was continued strength in grocery and liquor spend for the two largest sales states, NSW and VIC. This seems particularly strong for VIC, which over the past year has led the major sales states for this category.

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