Latest data may suggest Kiwi customers turning away from local online retailers; offshore merchant sales grow strongly

Content supplied by BNZ

Online purchases at domestic sites was 6% higher in February 2014 than February 2013. 

- While 6% is an ok growth rate, and double the growth rate calculated using Statistics NZ figures for electronic card transactions (using broadly comparable industries ), it is a lot softer than the 15% annual growth rate we saw in January.

- If we look at month-to-month growth, the normal seasonal pattern over the past 4 years has been a 5% or 6% increase in online purchases at domestic merchants as we move from January to February. But this year we saw a 3% fall. However, monthly data can be quite variable and care is needed in interpretation. The softness we are seeing in February might be symptomatic of the strong sales growth in January and December.

Online purchases at offshore merchants was 21% higher this February than February 2013.

- Online spending by New Zealanders at offshore retailers powers further ahead. 42% of NZ online retail purchases in February were from international merchants. Growth rates across categories mixed

- Strong growth in entertainment media sales, at both domestic and international merchants.

- At domestic merchants, online sales in February were also up strongly for Supermarket & Groceries, Other Specialised Food, Department Stores, and Pharmaceuticals & Cosmetics. Domestic online sales of Clothing, Liquor, Electrical Appliances, and sales at specialist Daily Sales sites, were all softer than in February last year.

- International merchants enjoyed strong double-digit annual growth rates across most major categories.

The table below shows growth rates on a monthly and 3-monthly basis (comparing to the same period in prior year). Monthly growth rates can be volatile, so it’s best not to read too much into a single month’s result.