Spending for online retailing has increased across the country during April, with a notable rise in Australian Capital Territory and South Australia.
According to National Australia Bank’s (NAB) Online Retail Sales Index, national spending online has risen by 23 per cent year-on-year.
This surpasses the results seen in March, when spending increased by only 12 per cent year-on-year.
These results are positive news for retailers in Australia, as they indicate that consumers may be gaining more confidence about their own finances and loosening their purse strings to spend more.
“We’ve seen stronger growth rates over the last year in areas like Fashion, Daily Deals, Media and Games & Toys. But these faster growing sectors are comparatively small when compared with the larger sectors in the online space – areas like Department stores and Homewares and Appliances,” said NAB chief economist Alan Oster.
Retailing businesses that have not experienced much positive growth in the way of sales during this month may want to consider reviewing their retail strategy. It’s important to do this a few times per year as consumer spending patterns and market conditions can change month to month.
Another positive result found by the NAB index is that domestic online retailers are still overpowering foreign retailers for another month in a row, accounting for 72 per cent of the spending during April.
NAB retail sector head Tieman White stated that the value of online spending sales has also been increasing as they become a larger proportion of retail turnover.
“While we’re seeing businesses take a multi-channel approach by developing an online presence alongside a traditional storefront, growth rates among businesses remain mixed,” he said.
“However, encouragingly we have seen online sales grow by over $2 billion in the past year, as retailers become more sophisticated in how they engage with their customers.”