INSTORE retail sales were up in February, according to NAB, as the Omicron wave passed and shoppers were more enthusiastic about in-person spending.
The monthly NAB Online Retail Sales Index contracted in February, down 3.5%, after a 7.2% increase in January during the peak of COVID cases across the country.
“Our broader measure of retail trade, the NAB Cashless Retail Index, suggests retail was up in February. So, it is likely that, with the easing of instore restrictions in most states in February, instore sales were boosted,” NAB’s chief economist, Alan Oster said.
“It is clear from the past two years that variant spikes are correlated with stronger online activity, as is subsequent easing once the peak passes.”
The national two-dose vaccine rate currently sits at more than 95% of those aged 16-plus, and over 67% for boosters. Omicron wave infections peaked in most states in December and January before easing.
Growth in the online sales series over the past two years has been particularly volatile, with the standard deviation more than double that compared to the first eight years of the series. However, using the year-on-year and 12-months-to measures, online sales continue to trend up.
Takeaway food was the only category to record online sales growth month-on-month in February. Games and toys, and media were steady, will all other categories contracting. Grocery and liquor saw the biggest drop, of around 8%, albeit following strong growth in January. Contraction in growth for the category was generally consistent across states, except Victoria and the ACT where it fared slightly better.
Department stores were down nearly 5.75% during the month, homewares and appliances by 3%, and the fashion and personal and recreational categories also fell.
Falls were seen across states and territories, led by Tasmania (down by about 6.8%), ACT (by nearly 6.2%), Northern Territory (by 5.9%), South Australia (5.5%) and Queensland (4.9%).
Over 12 months, grocery and liquor has contributed heavily to growth in online sales, increasing 20%. Takeaway food has surged by about 38%, while department stores have seen online spend jump by nearly 22%.
