Australia: Online sales slower over the year, contract in the month - NAB

The analysis team at NAB points out that at -0.8%(mom, s.a.), the NAB Online Retail Sales Index for Australia contracted in April , reversing growth in March (+0.8%,mom s.a.).

Key Quotes

“Year on year growth slowed from a revised 10.5% in March (was 9.0%) to 6.9% in April. The revised trend estimate for online retail sales is now virtually flat (0.1%).”

“ABS data on traditional retailers showed month on month seasonally adjusted contracted in March (-0.1%), with year on year growth of 2.4%.”

“We estimate that Australian consumers have spent around $22.37 billion over the last 12 months to April 2017. This is equivalent to 7.3% of spending at traditional bricks & mortar retailers, as measured by the ABS in the 12 months to March 2017.”

“In line with the headline number, most categories slowed in April. Against the general slowing were Homeware and appliances (10.4% yoy Apr vs 8.7% yoy Mar), Games and Toys(14.9% yoy vs  8.2% yoy) and Daily Deals (4.4% yoy vs -3.8% yoy). Media (16.3% yoy vs 16.6% yoy) maintained strong growth while previous  growth lead, Takeaway Food, slowed considerably (11.3% yoy vs 24% yoy).   Personal and Recreational Goods (3.4% yoy vs 14.4% yoy), Department Stores (3.4% yoy vs 8.4% yoy) and Fashion (2.4% yoy vs 4.9% yoy) also slowed but remained positive, whereas  Groceries and Liquor (-1.6% yoy ) is smaller this April compared to last.”

“SME sales represents just over a third of all online sales. While SMEs (-0.4%,mom s.a.) recorded less negative sales, the fall in growth was sharper given the March result (+1.5%, mom, s.a.). Year on year growth for SMEs (10.6%) is still stronger than Corporates (6.9%).”