From NAB:
National Australia Bank’s (NAB) latest Online Retail Sales Index was released today valuing online sales in Australia in the year to October 2012 at $12.3 billion. The rate of online growth has strengthened considerably over the past six months, growing by 26% year-on-year compared with just 14% year-on-year in May.
The Index found that online sales were equivalent to 5.6% of traditional retail spending for the year to September 2012, up from 4.9% in February.
Commenting on the findings, NAB Chief Economist Alan Oster, said the pick up in online sales across recent months has largely been driven by growth in domestic sales, which grew by 28% year-on-year in October.
NAB’s Retail Sector Head, Tiernan White, said that domestic retailers continue to be the dominant force in online sales accounting for 74% of the total, while trends for international retailers have been marginally softer in recent times.
“We’re seeing strong online growth from local retailers as online becomes an integral part of their sales and distribution channels. In part this can be attributed to domestic retailers understanding their customers’ buying preferences and providing their customers with choice,” Mr White said.
Key findings –
Who are the big spenders?On a per capita basis, the bulk of spending is recorded among those in their 30s and 40s – with the under 30s age group recording below average spending – likely a reflection of their relative lack of purchasing power. Under 30’s have a greater propensity to purchase from international retailers – accounting for around one-third of their purchases, compared with around one-quarter for other age groups.
Regional continue to outpace metro areas – Regional sales increased by 30% year-on-year, compared with 25% year-on-year for metropolitan sales. Growth rates were considerably stronger in regional WA at around 45% year-on-year. However metropolitan residents still account for the bulk of total spending at 71%.
Share of state spending – Continues to be dominated by largest states with NSW (33.6%), Vic (23.4%) and QLD (18.8%) accounting for 76% of total online spending. On a per capita basis the ACT has the strongest level of spending followed by the NT and WA.
Full report below:
