NAB Online Retail Sales Index, Monthly Update – October 2018
Online sales growth faster over the month, slower for the year
- NAB Online Retail Sales Index (NORSI) in October (+0.7% mom s.a.) accelerated relative to September (0.3%). 12 months to growth slowed in October, with sales up 14.7% compared to September (16.7%). Trend online retail sales also slowed.
- ABS data on traditional retailers showed month on month seasonally adjusted sales rose (0.2%) in September, almost on par with NORSI in that month.
- Our revised estimate puts Australian online spend at around $28.5 billion over the 12 months to October 2018. This is equivalent to 9.0% of spending at traditional bricks & mortar retailers, as measured by the ABS in the 12 months to September 2018.
- Generally moderate slowing for seven of nine categories in October, with only two categories accelerating in 12-months to growth terms. Fastest 12-months-to growth was again recorded by games and toys stores, whose sales accelerated (55.5% October vs 51% 12 months to September), along with third fastest, fashion (15.2% vs 13%). Second fastest, grocery and liquor (19% vs 19.4%) slowed, as did every other category: Media (14.4% vs 19.9%), homewares and appliances (14.1% vs 16.4%), department stores (8.7% vs 10.2%), personal and recreational (7.1% vs 10%), food catering (6.2% vs 9.5%), and the smallest spend share, daily deals (5.7% vs 16.6%)
- SME merchants represent over 35% of all online sales. Seasonally adjusted SME sales accelerated more rapidly in October (1.9%, mom s.a.), relative to large online retailers.
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.
