One of the trends Kiwi retailers will be most happy about, over the last six months, has been the continuation of the trend to buy local. While domestic online sales grew by 53%, international sales were down 5% on the same period last year. With the current ‘See NZ. Buy NZ’ sentiment, this is a trend that we expect to see continuing in the months ahead.
Lockdown drove another interesting change in shopping patterns during the week. While Tuesday continues to remain the most popular shopping day, over lockdown we saw the rest of the week evening out. Sundays emerged as the preferred day for online grocery, driving a big increase in weekend numbers. Pre-lockdown online weekend spending across all sectors averaged around $9.6m per day but post-lockdown this number has risen to around $15.6m per day.
At $2.8b, online shopping over the first half of 2020 is 30% above the same period last year. What’s even more astonishing is that over this same six month period overall retail spend declined by 1%, driven by physical retail’s big declines over Levels 4 and 3 when their doors were shut.
The forced necessity of lockdown drove this online growth activity but ongoing convenience, safety concerns and the formation of online shopping habits should see these higher levels continue. Getting your groceries, and other everyday items, online and having them delivered (or click & collect) has become the new norm for many. The opportunity is now for retailers to maintain their new customers and to build on the new, higher and more often, spending habits of their existing ones.
Where did the lockdown spend go?
Overall online spend and transaction increased significantly thorough lockdown peaking at the start of Level 3. But not all sectors shared the spoils evenly. It’s not surprising that the big winners were the essentials: Food, Groceries & Liquor and Clothing & Footwear. What may be a little more surprising is the growth in Homeware, Appliances & Electronics. This possibly reflects the establishment of working from home arrangements, the popularity of cooking over lockdown and the extra demand on device watching and game playing.
Online Speciality Food, Groceries & Liquor
Average weekly spend and transaction experienced significant growth before and during all levels of lockdowns. During Levels 3 and 4, average weekly online spend increased by more than 105% over a year ago.
Online Clothing & Footwear
Spend continued to grow over lockdown, peaking in Level 3 with spend 62% greater than a year ago.
Online Homeware, Appliances & Electronics
Continued growth over lockdown, peaked in Level 3 with average weekly online spend up 135% over a year ago.
The data used for this eCommerce Spotlight is card transactional data supplied by Datamine.
How we can help
You don’t become New Zealand’s favourite courier without learning a thing or two along the way. We deliver more online shopping, and to a higher service standard, than any courier company in NZ. We know that what we do has a direct impact on how successful your business is. And that’s why we go all out to have such a great range of product, services and people to help your business grow - from product ideas right through to logistics and delivery anywhere in NZ and the world.
Get in touch and let's talk about becoming partners.