Online domestic spend growth outstripped international spend growth. Whether it was a weaker Kiwi dollar or a sign that local retailers were improving their online game, New Zealand’s domestic online spend grew at a promising 19% in 2018. This outstripped spend growth with international based retailers which slowed to 10% in 2018 from an impressive 23% in 2017.
To put this into context, the total retail spend in New Zealand grew by only 3% – whereas total online spend grew by 16%. In 2017 international transactions grew by 37% and then in 2018 they only grew by 6% – a notable slowing in growth for international. The number of domestic transactions, on the other hand, grew by a very healthy 16%.
Another encouraging sign in 2018 was the domestic basket size, which grew from $115 in 2017 to $118, trumping the international basket by a whopping $42.
Other economic factors came into play in 2018, particularly the Buy Now Pay Later (BNPL) trend which is encouraging an avid shopping culture – particularly amongst younger shoppers.
Key highlights of the year:
Domestic online spend grew
twice as much as international spend
The five key reasons shoppers go online rather than buying at physical stores:
- Easier/convenient to search and buy
- Cheaper than in store
- More choice
- Easy to compare prices
- Don’t like shopping in stores/malls
Source: NZ Online Shopper Survey 2018
Note: Total online spend in 2018 was $4.164b, representing a +16% increase
Note: Total online transactions grew in 2018 by +12% compared to 2017
Note: Transactions per shopper grew by +10% in 2018
Note: The average basket size grew by +4% in 2018
Note: Overall spend per shopper was up +14% in 2018