Content supplied by BNZ and Marketview
New Zealand’s online retail spending now exceeds $3 billion per year.
Total online spending by Kiwi’s rose moderately in April and was 7% higher than in April last year. There was a dip in spending between March and April, but this is a typical seasonal occurrence.
The value of online spending at domestic merchants was up 3% on spending in the same month last year. Bricks and mortar stores showed slightly higher growth - the value of Electronic Card Transactions reported by Statistics New Zealand (SNZ) for April was up 5% on April last year (for retail industries broadly comparable with those used in our online index).
Online purchases from international merchants continue to show double-digit growth, with spending up 14% on April last year.
The online sales split between domestic and international merchants was approximately 58% vs 42% for the month of April; and 59% vs 41% for the 12 months ended April. Over the past year international merchants have gained 2½% market share.
For the 12 months to 31 March 2015, online retail sales across the categories we monitor represented 6.4% of retail spending reported by Statistics New Zealand, for equivalent categories. If we exclude the grocery and liquor sectors from both the official retail figures and our Index, online spending is equivalent to around 9.7% of traditional retail sales.
Growth rate in domestic merchants’ physical store sales outpacing their online sales
The value of Electronic Card Transactions (ECT) reported by Statistics New Zealand for April is up 5.3% on April last year, for retail industries broadly comparable with those used in our online index (“core retail” industries excluding hospitality). This growth rate mainly reflects sales at physical stores and exceeds the 2.7% rise in online spending at domestic retailers compared to April 2014. However, the annual growth rate is 4.3% for online sales by domestic merchants if we exclude “daily deals” sites.
Using ECT data as a proxy, for 8 out of the last 12 months domestic merchants’ physical store sales have grown faster than their online sales (in year-on-year terms).
Electrical and Electronic goods are a key growth category for Kiwis, at both domestic and international merchants
International merchants continue to enjoy faster online spending growth in NZ than their domestic counterparts.
The categories “Clothing, Footwear and Accessories” and “Electrical and Electronic goods (incl computers)” are responsible for just over 40% of the growth in New Zealanders’ annual online spending at international sites. If we exclude “Daily Sales” from the mix, then the categories “Groceries, Liquor & Specialised Food” and “Electrical and Electronic goods (incl computers)” are responsible for over 60% of the growth in annual online spending at domestic sites.
International merchants’ market share continues its upward trajectory
In the month of April 2015 the online sales split was approximately 58% for domestic merchants versus 42% for international merchants (as charted to the left).
For the 12 months ended April, the ratio was approximately 59% for domestic merchants versus 41% for international merchants. International merchants have made a market share gain of 2½% over the last 12 months.
The full Report is here.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.