Australia: NAB online sales increase 0.3% in April 2016 - NAB

Alan Oster, Chief Economist at NAB, notes that at 0.3% the latest seasonally adjusted NAB Online Retail Sales Index shows sales growth weakened in April, after rapid growth in March (1.7%) and February (1.0% ).

Key Quotes

“As a result the annual growth rate slowed from 13.0% to 10.8%. The trend estimate for online retail sales also slowed to 0.7% - continuing a weakening trend. Looking through the month to month volatility, it appears that online sales in April were relatively soft - albeit coming off a very strong few months.

ABS data showed growth of traditional retailers grew in March (0.3% mom, s.a.), and 3.7% higher than a year ago. At 10.8% over the year, growth of online retail continues to significantly outpace traditional retail sales growth.

In dollar terms, we estimate Australians spent $19.6 billion on online retail in the 12 months to April 2016. This level is equivalent to 6.6% of spending at traditional bricks & mortar retailers as measured by the ABS in the 12 months to March 2016.

A key driver of the overall result was the slowdown in Homewares and Appliances which contracted slightly (-0.2% yoy vs 10.9% yoy in March).

Sales were also slower in Fashion (8.5% yoy vs 14.0% yoy), Games and Toys (16.2% yoy vs 32.6% yoy), Daily Deals (-8.3% yoy vs -2.9% yoy) and slightly slower in Media (27.3% yoy vs 29.5% yoy).

Sales improved in Personal and Recreational (7.6% yoy vs 0% yoy), Groceries and Liquor (8% yoy vs 3.4%), Food Catering (47.6% yoy vs 45.8% yoy) and Department and Variety Stores (2.5% yoy vs 1.8% yoy).

While representing just over a third of all online sales, SME (18.1% yoy) outpaced corporates this month and improved on the March yoy growth (9.2%).”