Online retailers outpace traditional retail in March: NAB

NAB’s online retail sales index grew by 0.4 per cent in March on a seasonally adjusted basis, slowing from an upwardly revised 1.4 per cent in February. Online sales grew faster than traditional retail sales, which increased by 0.2 per cent in March.

Online sales outpaced traditional retailers most notably in the fashion sector, where online retailers saw a growth of 3.2 per cent in March, while broader fashion retailers saw milder growth of 0.5 per cent.

“In recent months this has been particularly true for some categories like fashion, with growth far more rapid for the online segment,” NAB chief economist, Sally Auld said.

“This is partly due to the larger relative contribution by international retailers to the fashion category.”

NAB found that sales growth had slowed for both international and domestic retailers, but international sellers recorded stronger monthly growth in March.

In the 12 months to March, NAB estimated that Australians spent $61.87 billion on online retail, approximately 14 per cent of the total retail trade estimate.

In year-on-year terms, online retail trade grew by 13.7 per cent, underpinned by strong spending in the December quarter boosted by sales events such as Black Friday and Cyber Monday.

Online sales growth of takeaway food, groceries and liquor cooled notably in March, each falling by over 2 per cent.

NAB’s April Australian wellbeing survey found that households were trying to save more due to mounting pessimism over global uncertainty and financial stress.

The April wellbeing index found that Australians felt pessimistic about their retirement savings, with over half believing they would need to work longer in order to retire comfortably.

Wellbeing remained lowest by a considerable margin for those on low incomes as cost of living pressures remain high. Financial stress rose for the second straight quarter, even as the inflation rate cooled to reach the RBA’s target bands.

Not having enough retirement income was a key contributor to financial stress for respondents, followed by providing for their family’s future.

The survey also found that working from home had fallen to a survey low, despite most workers wanting more. Time spent working from home fell in the March quarter to 29 per cent, while workers would prefer to work from home for 47 per cent of the work week on average.

The number of Australians trying to save had increased to an above-average 78 per cent in March, NAB found.

“Most Australians are trying to spend less and save more. As uncertainty rises, labour mobility has slowed. Time spent working from home has also fallen to a survey low,” NAB said.