• On a month-on-month, seasonally adjusted basis, the index continued to grow, albeit slowing in October (1.6%), following a slight upward revision to September (2.6%, was 2.4%).
• Growth also slowed in year-on-year terms (10.7% y/y), with September revised up slightly (12.7%, was 12.4% previously published).
• Growth was recorded for most categories in October, except large sales category homewares and appliances, fashion, and media. While homewares and appliances contracted in October, with strong September growth, the category is still positive in trend terms. Growth was most rapid for department stores, along with takeaway food, and grocery and liquor. Department stores continue to lead in year-on-year terms, accelerating in October.
• While growth was recorded for all states and territories this month, an acceleration for NSW, ACT, and NT was insufficient to counter slowing in other states. The acceleration in growth for the grocery and liquor category can be attributed to the two large sales states, NSW and VIC, which had recorded a contraction for the category the month prior.
• Metro areas led growth, but the rate slowed from the prior month, while regional areas accelerated. While In year-on-year terms, metro growth continues to outpace regional, the gap has narrowed.
• Both domestic and international retailers recorded growth in the month, with the latter slowing at a slightly faster rate. In year-on-year terms, the gap between domestic and international has closed in recent months as the latter rebounded.
• NAB estimates that in the 12 months to October, Australians spent $59.3 billion on online retail, a level that is around 13.7% of the total retail trade estimate (September 2024, Series 8501, Australian Bureau of Statistics), with growth (9.1%) again improving on the month prior.

NAB Chief Economist, Alan Oster commented:

While growth for online retail sales in month on month, seasonally adjusted terms, slowed in October, it remained positive for most categories. The contraction in homewares and appliances is probably an intertemporal easing after strong growth in September. Interestingly, growth for both grocery and liquor, and takeaway food, accelerated this month. This is in contrast to a pattern in recent months of switching growth between these two categories, with the possibility of substitution between the two categories. Also worth noting is the rapid growth in Department stores, which led in monthly change terms, and continues to lead in year-on-year terms. If this rapid growth for the category continues, it’s likely that it will displace homewares and appliances as the largest sales category in the near term.

Get all the insights in the NAB Online Retail Sales Index (October 2024)