Online sales growth has slowed to its second slowest rate recorded, the NAB Online Retail Sales Index for June shows.
The year-on-year (yoy) rate went down to +14 per cent compared to +17 per cent yoy in May. This is the second weakest growth rate in the index’s history, but only mildly stronger than the +12 per cent yoy in March 2013. The Index also eased back to 223 points from 226 points in May.
As a result, this saw in the 12 months to June 2013, Australian online retail spending totalled $13.9 billion, which is equivalent to 6.2 per cent of the traditional bricks and mortar retail sector in the year to May 2013.
NAB has suggested fewer Fridays and a lack of product launches may have contributed to the subdued growth.
“First, June 2013 had only four Fridays – typically a peak day for online sales – compared with five Fridays in June 2012,” the monthly update said.
“Second, June 2012 featured several major product launches in the homewares and appliances space (particularly in personal computing and mobile phones) – which tend to inflate sales – while June 2013 lacked similar releases, contributing to more subdued growth.”
The Index also showed bricks and mortar retail grew by +2.8 per cent year-on-year in May, marginally stronger than the +2.4 per cent yoy level in April. However, when seasonal factors are included, the growth trend for traditional retail eased back to +2.4 per cent yoy from +2.6 per cent yoy in May.