NAB Online Retail Sales Index: May 2017
Online sales growing over the year, rebound in the month
Overview:
- NAB Online Retail Sales Index (NORSI) rebounded in May (+1.3% mom s.a.), following the April contraction (-0.7%,mom s.a.). Year on year growth also improved marginally in May (7.9%). Trend online retail sales (+0.2%) picked up slightly from the previous estimate (0.1%) but remain subdued.
- ABS data on traditional retailers showed month on month seasonally adjusted sales up a full 1% in April, outpacing NORSI for that month. However NORSI is still faster year on year.
- We estimate that Australian consumers have spent around $22.53 billion over the 12 months to May 2017. This is equivalent to 7.4% of spending at traditional bricks & mortar retailers, as measured by the ABS in the 12 months to April 2017.
- Mixed results by category this month, with the largest spend share Homeware and appliances (11.5% yoy May vs 10.5% yoy Apr) accelerating, along with a rebound in Grocery and Liquor (6.6% vs -1.4%), Department Stores (6.8% vs 3.4%), and Personal and Recreational Goods (5.7% vs 5%). While Media recorded the strongest year on year growth, it slowed in May (15.2% May vs 16.8% Apr). Takeaway Food (10.6% vs 13.7%), Daily Deals (4.0% vs 4.4%), and Fashion (2.2% vs 3.3%) also slowed but remained positive, whereas Games and Toys (-0.7% yoy vs 15.0% yoy) is smaller this May compared to last.
- SME sales represents just over a third of all online sales. Seasonally adjusted SME sales saw a dramatic return to growth in the month (12.4%,mom s.a.), a result supported by a rapid acceleration in year on year growth for SMEs (23.9%), and still stronger than Corporates (7.9%).
For further details, please see the attached document.
About the Author
Brien is an Economist at NAB and is involved predominantly in the area of industry insight using risk metrics. Brien’s chief responsibilities are Industry Ratings and analysis that provides industry insights.
He is a regular attendee on Sector boards and contributor to Risk appetite statements.
Prior to NAB Economics Brien was involved in the NAB Credit Risk area, in the development and monitoring quantitative credit risk assessment models.
Before life at NAB, Brien was an Associate Lecturer in Economics at LaTrobe University, teaching in areas related to economic development focussing on Asia, and the international business environment.
