Dick Smith Clawing JB Hi-Fi e-Biz
The analysts companies give this as just one example of an explosion in online commerce in Australia, where the report says local retailers are now outpacing international rivals by a wide margin.
International retailers’ share of total online spending Down Under slipped from 26 per cent in April to 25 per cent in July, the duo report.
Online sales by international sites rose just 4 per cent in the 12 months to July – well below the two-year average of 17 per cent, according to a National Australia Bank report, noted by UBS/Hitwise.
Meanwhile total online sales to Australians rose 11 per cent to $15.6 billion – twice the growth rate of retail sales – and now comprise 6.6 per cent of Australian retail sales.
Major winners include Woolworths and its cheap booze subsidiary Dan Murphy’s. Dan’s is said to be outperforming Coles’ liquor business, with Web site traffic rising 160 per cent to almost 20 million site visits in 2014.
Meanwhile in the consumer electronics business, Dick Smith – sold off by an incredibly unimaginative Woolworths board in 2012 for a relative pittance of $20 million – has been clawing back market position from rival JB Hi-Fi.
Dick Smith’s site visits rose 80 per cent to 21 million last year and are up 65 per cent so far this year, according to the report.
The retailer has one of the highest online sales levels of all the tech majors at under 5% of all sales, and hopes to grow this to 10% in the near future.
Its online success – e-sales rose 55% in FY14 – has been attributed to its multi- platform online strategy with a hugely active website, which runs hourly and daily deals, Catch of The Day and eBay store presence.
Meanwhile, though traffic to JB Hi-Fi’s Web site have hit 100 million, its site visits so far this year have fallen 10 per cent. Australian department stores and speciality apparel retailers are also doing well.
Country Road’s site visits have risen 30 per cent so far this financial year, while Myer’s traffic is said to have risen 89 per cent and David Jones is up by 61 percent.