Online sales in Australia have grown 13.5% in the financial year ending June 2016, surpassing $20 billion according to the NAB Online Retail Sales Index.
The latest NAB Online Retail Sales Index is out, showing that online retail sales in Australia reached $20.1 billion from July 2015 to June 2016, with annual growth of 13.5%. As a percentage of overall retail spend, with bricks and mortar accounting for $296.9 billion, online retail still accounts for only 6.8%, but the growth rate outpaces bricks and mortar growth.
The latest report indicates that 81% of total online retail sales are domestic, putting paid to the long held view that offshore sales are largely responsible for stealing retail business from the local market. Domestic spending growth (16.9%) far outweighs international sales growth at 0.9%.
Small online retailers are enjoying substantially greater growth rates than their larger counterparts, growing at 22.2% year-on-year, according to the NAB Online Retail Sales Index.
“The $20.1 billion spent by Australians in the last year is equivalent to 6.8% of spending in the bricks and mortar retail sector – with growth by online businesses far outpacing these traditional retailers,” NAB Group Chief Economist Alan Oster said.
“The share of total online spending is dominated by homewares and appliances, groceries and fashion – with media contributing the most in the past year.
“Takeaway food continues to have the fastest annual online sales growth, growing 56% in the past year. It shows the rapidly changing behaviours of consumers in the way they’re ordering takeaway as apps and new services enter the market.”