Covid-19 Boosts Aussie Online Sales By 50pc-Plus
SYDNEY: The NAB Online Retail Sales Index rose by 50.4 percent year-on-year in May, following April’s record growth of 58.5 percent.
“While online retail sales growth is typically volatile month to month, the recent changes that Covid-19 has brought to the broader economy, and day-to-day life, has made it even more so. From our observations, the general trend for online retail is up,” said Alan Oster, chief economist at NAB.
Although month-on-month sales contracted by one percent in May, this did follow record month-on-month growth of 16.4 percent in April.
The proportion of Australia’s retail sales made online roughly match those of international markets.
“For example, the US Census Bureau quarterly e-commerce estimate for online retail is about 11.5 percent of total US retail sales, a figure not too dissimilar to our estimate for Australia,” said Oster.
However, in Australia this growth seems to be concentrated in our more populated areas, with the three most populous states representing more than 80 percent of all online sales, which is slightly above their share of the population. In the 12 months to May, Australians spent $34.18 billion on online retail.
According to the final retail trade figures from the Australian Bureau of Statistics, online sales contributed 10.1 percent to total retail turnover in May.
Overall, retail turnover increased by a record 16.9 percent that month. – ChannelNews