September A Slow Month For Online Retail As Lockdown Restrictions Eased
Online retail growth dipped in September after customers turned back to physical stores in Australia asCOVID-19 restrictions eased around the country, with appliance sales taking a hit.
According to the NAB online retail sales index, e-commerce growth slowed to just 0.9% in September after it was boosted by 5.9% in August and 7.2% in July.
However, online spending saw huge growth YoY with a rise of 62.7% for the same time last year, with 67.2% for August and 66.6% in July.
Comparatively, physical store sales unsurprisingly suffered month-on-month in September with a 1.5% drop, but it was up 5.2% YoY.
NAB chief economist Alan Oster estimates in the year leading to September 2020, Aussies spent $40.9 billion on online retail. This represents 12% of all retail trade.
According to the AFR, bosses from online retailers Accent Group and Kogan expect online sales to skyrocket to 25-30% of all retail spending in the next few years.
The strongest growth category for online sales in September was takeaway food, while online sales for homewares and appliances fell in September but grew by 60% YoY.
Western Australia delivered the highest online says growth while Victoria led the way ahead of NSW and Queensland.