• On a month-on-month, seasonally adjusted basis, the index recorded rapid growth in September (2.4%), following a slight upward revision to August (0.1%, was 0.0%).
• Growth also accelerated in year-on-year terms (12.4% y/y), with August revised up slightly (9.9%, was 9.8% previously published).
• While growth was recorded for all categories in September, an acceleration was observed for only half the categories. Large sales category, homewares and appliances, led monthly growth, rebounding rapidly in September, along with department stores. Rapid monthly growth for the latter category also boosted its growth in year-on-year terms, where it continues to lead.
• Growth was recorded for all states and territories except NT this month, with rapid acceleration for WA and a rebound for both VIC and ACT. Slower growth for the grocery and liquor category can be attributed to the two large sales states, NSW and VIC, which recorded a contraction for the category.
• While in aggregate, metro areas led growth, the results were mixed by state with NSW and SA growth clearly driven by metro while regional growth supported VIC and WA. In year-on-year terms, metro growth continues to outpace regional, but again this was most evident in NSW and SA, with results in all other states far closer, and favouring regional.
• Both domestic and international retailers recorded growth in the month, with the former only slightly faster. In year-on-year terms, the gap between domestic and international has closed in recent months as international rebounded.
• NAB estimates that in the 12 months to September, Australians spent $58.79 billion on online retail, a level that is around 13.7% of the total retail trade estimate (August 2024, Series 8501, Australian Bureau of Statistics), with growth (8.5%) improving on the month prior.

NAB Chief Economist, Alan Oster commented:

Growth for online retail sales in month on month, seasonally adjusted terms, accelerated in September. The index has improved for the past two months, after weakness in July. In August, the two largest sales categories, homewares and appliances, and department stores, along with mid-size category personal and recreational goods, contracted, netting growth from other categories. The rebound in growth for these categories in September has been considerable. 

Over the year, department store growth has been rapid, and this has been particularly noticeable in TAS, WA, ACT, and QLD, with VIC and NSW slightly slower than the aggregate for the category. Indeed, over the past two years, WA has, on average, ranked either first or second for year-on-year growth for this category, while VIC has generally ranked lower.

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