June 1, 2016

NAB Online Retail Sales Index: April 2016

Online sales increase 0.3% in April 2016

Online sales increase 0.3% in April 2016

  • At 0.3% the latest seasonally adjusted NAB Online Retail Sales Index shows sales growth weakened in April, after rapid growth in March (1.7%) and February (1.0% ). As a result the annual growth rate slowed from 13.0% to 10.8%. The trend estimate for online retail sales also slowed to 0.7% – continuing a weakening trend. Looking through the month to month volatility, it appears that online sales in April were relatively soft – albeit coming off a very strong few months.
  • ABS data showed growth of traditional retailers grew in March (0.3% mom, s.a.), and 3.7% higher than a year ago. At 10.8% over the year, growth of online retail continues to significantly outpace traditional retail sales growth.
  • In dollar terms, we estimate Australians spent $19.6 billion on online retail in the 12 months to April 2016. This level is equivalent to 6.6% of spending at traditional bricks & mortar retailers as measured by the ABS in the 12 months to March 2016.
  • A key driver of the overall result was the slowdown in Homewares and Appliances which contracted slightly (-0.2% yoy vs 10.9% yoy in March).
  • Sales were also slower in Fashion (8.5% yoy vs 14.0% yoy), Games and Toys (16.2% yoy vs 32.6% yoy), Daily Deals (-8.3% yoy vs -2.9% yoy) and slightly slower in Media (27.3% yoy vs 29.5% yoy).
  • Sales improved in Personal and Recreational (7.6% yoy vs 0% yoy), Groceries and Liquor (8% yoy vs 3.4%), Food Catering (47.6% yoy vs 45.8% yoy) and Department and Variety Stores (2.5% yoy vs 1.8% yoy).
  • While representing just over a third of all online sales, SME (18.1% yoy) outpaced corporates this month and improved on the March yoy growth (9.2%).

For further details, please see the attached document.

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