Online retailers dodge doldrums
Online retailers have dodged the traditionally lacklustre January post to post a 27 per cent annual growth to $13 billion for the 12 months to January 2013.
The growth rate, which matches the high recorded in November, shows renewed strength within the online sector during what is traditionally a period of weakness post Christmas. It remains substantially higher than the 0.4 per cent rate posted by the traditional retail sector for the same period.
NAB Chief Economist Alan Oster said: “The latest index shows the continued strength in the online retail market. December might not have been as strong as it normally is, with growth dipping to 23 per cent, but January proved a lot more resilient than previous years and growth bounced back to its November high.
“The increase in sales in January suggests the recent lift in consumer confidence has flowed through to some online retailers.”
NAB’s Retail Sector Head, Tiernan White, said the strong result has been led by domestic online sales. “They grew 28 per cent compared to the 25 per cent growth in online sales from international retailers,” Mr White said. “Domestic retailers still account for almost three quarters of sales.
“It’s clear that online sales are becoming a larger proportion of retailer turnover. The key for retailers is to ensure their online offering complements and supports their core business. The successful retailers are taking a multi-channel approach and providing their customers with alternative ways to shop.”
Online sales as a percentage of total retail spending have plateaued, standing at 5.8 per cent compared to 5.6 per cent in November 2012.