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Online retail spending: April results are in

By Shannon Williams
Tue 9 Jun 2015
FYI, this story is more than a year old

BNZ and Marketview have released their latest monthly report on New Zealand online retail sales for April 2015.

The report highlights New Zealand’s online retail spending now exceeds $3 billion per year.

Total online spending by Kiwis rose moderately in April, up 7% than April 2014. The report shows a dip in spending between March and April, but BNZ explains this is a typical seasonal occurrence. 

The Retail Sales report shows bricks and mortar retailers showed slightly higher growth than online spending. The value of online spending at domestic merchants was up 3% on spending in the same month last year. The value of Electronic Card Transactions report by Statistics NZ for April was up 5% on April last year. 

According to the findings, online purchases from international merchants continued 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, the report shows. Over the past year international merchants have gained 2½% market share.

The report details how the growth rate in domestic merchants’ physical store sales are 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, BNZ says. 

BNZ says 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. 

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), BNZ explains.

Electrical and Electronic goods are a key growth category for Kiwis, at both domestic and international merchants, the report reveals. 

Interestingly, international merchants continue to enjoy faster online spending growth in New Zealand than their domestic counterparts.

Clothing, Footwear and Accessories and Electrical and Electronic goods (incl computers) categories are responsible for just over 40% of the growth in New Zealanders’ annual online spending at international sites. 

Excluding the Daily Sales category from the mix, Electrical and Electronic goods (incl computers) and the Groceries, Liquor & Specialised Food categories are responsible for over 60% of the growth in annual online spending at domestic sites.

The report shows 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.

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.

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