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Online retail sales weakened in December after November peak
However, online sales were up 23% y-o-y, but the slowing of December trade marked “weaker” internet sales from its peak in November, according to NAB’s latest online Retail Sales Index.
NAB Online Sales Index fell to 227 points (from 241 pts in November), attributed to seasonal factors with November being a peak month for online retail sales ahead of the Christmas rush, according to the Index.
It is also interesting to note Click Frenzy online sales took place in November with millions of Aussies taking to the Internet to seek out bargains in the one off 24 hour extravaganza, causing some retailers’ e-commerce sites to crash, but proving the huge appetite for web shopping.
Read: Click Frenzy: What The Retailers Say
Australia’s online retail spending totalled $12.8 bn in 2012 – around 5.8% of the size of Australia’s traditional bricks & mortar retail sales for the 12 months to November.
Domestic sales accounted for around 73% of total online sales, good news for retailers locally.
However, the annual growth of 23% for web sales was “reasonably robust “when compared with the past year, but below the strong growth rates enjoyed in October and November (+26% ,+27% respectively), says Nab.
In addition, growth for online sales continues to outperform the traditional bricks and mortar sector.
In November, traditional sales increased 3.3% y-o-y (non-seasonally adjusted) but taking into account seasonal factors, growth was just +2.5%.
Spending in ‘Household goods & Electronics’ was above the trend level, averaging $181 per transaction, as was Media spend.
However, spending in Auctions, Department Stores & Fashion contributed to the bulk of the web sales.
“There is a stark difference between the share of spending (in dollar terms) and the number of transactions – with a large volume of transactions on comparatively low value items (Recreation, Toys, Games & Hobbies, Music, Movies, Books)”, the Index noted.
Online currently accounts for just over 1.5% of total sales for big players like JB Hi-Fi and Harvey Norman, although it looks set to grow further this year and beyond.
There was also an interesting upturn after Christmas – the Index shows, with the traditional post-Christmas spreading to the web in a more “significant fashion”, attributed to to increased advertising.
