Falling only shortly behind electronic games and toys, grocery and liquor sales were the second highest in terms of growth against other online retail segments in September. Specifically, the Index reports that grocery and liquor were up by 1.9 per cent in month on month terms.
According to Alan Oster, Group Chief Economist for the bank, growth is being driven by the 65+ age group - the biggest online audience for grocery and liquor.
“When you look by age group, a very different dynamic is seen in the 65+ age group, who have a very disproportionate share in the online grocery and liquor segment”, Oster said.
Oster explained that while other audiences are cutting back their spend on luxury items due to financial concerns, those over the age of 65 are less influenced by what’s happening with wages, because most have stopped working.
The Australian Bureau of Statistics’ (ABS) latest figures for September also show positive growth for retail, reporting an increase of 0.4 per cent across the industry.
Commenting on the results, Retail Council Chief Executive, Anna McPhee, said the results demonstrated a spring in the step of consumers heading into the most important trading period of the year for the sector.
“Today’s figures string together the first two consecutive months of continued solid growth not seen since January and February. Whilst other months have delivered small and incremental growth, retailers have been calling for evidence of sustained increases in month on month retail activity”, McPhee said.
McPhee predicts that there could be a long-term average annual growth of six per cent in the future if current figures are sustained and consecutive over the next few months.
“The August and September momentum might be a sign that the sector is on a positive and sustainable growth path once again and puts the retail sector in a good position heading into the final months of the year – an important time for the economy.”
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