Online retail experienced a modest growth in December, with sales growing 0.1% compared to November (-0.3%), and 8.9% higher compared to a year ago. The monthly growth rate is still considerably slower than much of the series history.
ABS data showed growth at comparable traditional retailers in November to be 0.7% higher than October, and 3.9% higher than a year ago.
With these results, November traditional retail sales have outpaced growth in online sales for that month.
In dollar terms, we estimate Australians spent $16.4 billion on online retail in the 12 months to December 2014. This level is equivalent to 6.8% of spending at traditional bricks & mortar retailers as measured by the ABS (excluding cafés, restaurants and takeaway food, to create a like-for-like comparison) in the 12 months to November 2014.
In year on year terms to December, all categories except of Daily Deals recorded growth. Groceries and Liquor (19%) saw the highest year on year growth, followed by Electronic Games and Toys (14%), though growth for the latter is down from the circa 40% over past two months. Homewares and Appliances (10%) rebounded sharply from a contraction in November. Other key growth areas included Department and Variety stores (8%), Fashion (8%) and Media (7%), while Personal and Recreational goods grew at a more modest rate (2%). Daily Deals continued to contract (-11%).
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
