Online sales continue to surge in the lead-up to Christmas

The Australian Bureau of Statistics revealed in its latest retail report on Monday (4 October) that a record $4.2 billion was spent online in August – an increase of 15.1 per cent from July 2021 and a massive 36.4 per cent up from the same time last year.

The figures cover all retail sales with online food sales increasing 11.7 per cent from the previous month and 28.8 per cent compared to August 2020. Non-food online sales increased 16.3 per cent in August compared to the previous month and are up 39.2 per cent compared to the same time last year.

According to Australia Post’s September eCommerce report NSW had a 41 per cent share of online shopping, making 1.3 times more purchases compared to the rest of the country. The ACT was the next fastest-growing state or territory with growth of 52.2 per cent year-on-year.

The Australia Post data shows 37 per cent of sales were in the variety goods sector, with the baby products sector showing one of the biggest increases up 29 per cent YOY. Fashion purchases were up 25 per cent and home and garden sales increased by 21 per cent.

Surprisingly, the report also states that it is not just physical restrictions that are driving online sales. The results of the Australia Post September survey show that online shoppers are making more unplanned purchases than 12 months ago.

Australian Retailers Association chief executive Paul Zahra said the figures show a “pent-up shopping demand”.

“Many Australians are turning to the internet for their shopping in a big way with so many of us subject to stay-at-home orders, and that’s reflected in the ABS figures with online sales in August going through the roof,” Mr Zahra said.

Mr Zahra said the level of online spending is likely to continue through to Christmas and urged consumers to shop earlier to avoid delays or lack of availability of products.

He said the association’s own research in conjunction with Roy Morgan indicates that 48 per cent of all purchases this Christmas will be made online.

Mr Zahra also cautioned Australians to plan for some supply chain challenges this year.

“There’s a myriad of issues disrupting supply chains this year and whilst retailers have been navigating this extremely well, these supply chain demands are likely to continue for the foreseeable future,” he said.