Online sales fall flat

present, mouse, ecommerce, christmas, onlineChristmas failed to fire up online shoppers, with sales for December barely up on the month before.

National Australia Bank’s Online Retail Sales Index reports a seasonally adjusted 0.1 per cent sales growth in December compared to November.

“It wasn’t great,” said NAB’s chief economist, Alan Oster, on Wednesday.

“Groceries and homewares did well over Christmas – but department stores were terrible.

“But at least it wasn’t as bad as November, which was a shocker.”

Oster said November’s seasonally adjusted online sales fell 0.3 per cent on the month before, making December’s flat result more disappointing coming off a low base.

Despite the meagre month on month result, online sales for December were still up 8.9 per from the same period in 2013.

Oster said online retail growth continues to outpace that of its bricks and mortar counterpart, but not like it once did.

“The days of 20 per cent plus (online) growth are gone,” Oster said.

“We will still think online will go faster – but something like eight to ten per cent growth.”

Oster said this trend is not only a result of a falling Australian dollar keeping local shoppers away from international online stores.

“I think it’s also got to do with traditional retailers now matching (online prices).”

For the entire calendar year, NAB estimates Australians spent $16.4 billion online in 2014, which is 6.8 per cent of traditional bricks and mortar sales.

For this measure, spending at cafes, takeaway and restaurants was excluded to give a like for like comparison.

All online categories recorded year on year growth except `daily deals’, which contracted 11 per cent. Groceries and liquor led the way with 19 per cent, and electronic games and toys was second with 15 per cent.

AAP

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