The largest share of online spend

New Zealand’s largest online retailers have continued to successfully grow this sector to such an extent that it now comprises 31% of all online spend and 50% of all transactions. It’s our most popular sector with 84% of online shoppers or some 1.57 million customers making purchases.

The total online basket size in Department & Variety is 18% higher than the bricks and mortar basket size at $66 – though it is still the smallest basket size for all our sectors. However, it is one of our best performing sectors with $1.3 billion in online spend.

Department & Variety spend grew by 10% in 2018 with an increase in transactions of 6%. This was driven by growth in both domestic and international sales in this sector.

10
%
Growth in online spend over 2017
62
%
Of online sales were with domestic merchants
Online basket sizes were
18
%
higher than offline basket sizes
Domestic sales grew
27
%
and international sales grew 19% in Q4
76
%
Of online shopping occurred over the weekdays - the highest being on Wednesday
The highest spend growth was amongst rural women at
28
%
And metro men at 17%
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Top reasons customers say they purchase online in Department & Variety, rather than in a traditional store:

  1. Easier to search and buy (60%)
  2. I can compare prices more easily (54%)
  3. Easier to go online than in store (52%)
  4. Cheaper than in store (39%)

Source: NZ Online Shopper Survey 2018

Spend with New Zealand e-tailers grew by 8% in 2018. This was driven by a 6% increase in the average domestic basket size. Domestic transactions were relatively flat, as were the number of shoppers in this sector. This is a sector where international sales grew faster than domestic this year, with 13% growth in spend.

This was driven by a growth in the number of transactions of 9% as well as an increased basket size of 4%, meaning that shoppers purchased more frequently and with a higher average value per transaction.

Sales were steady throughout the year except in Q4 when domestic sales surged 27% higher than the rest of the year and international sales grew 19% as the holiday season approached.

Wednesday is the biggest shopping day for this sector and 76% of all purchases occur during the week.

Men and women shop equally often in the Department & Variety sector. The shoppers’ geographic distribution is much the same as for any sector – with rural making up 14% of shoppers and urban tipping 48%. However, it is the rural women who have the highest spend growth in this sector, which begs the question: Are you targeting them? 

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Most purchases in Department & Variety are from local websites (79%) or local marketplaces (40%) like Trade Me, NZSale and Onceit. Shoppers are buying clothes, toys, books, gifts, kitchenware and Christmas decorations. For these shoppers, the most important things when purchasing online are:

  1. Range of products (87%)
  2. Cheapest price (87%)
  3. Delivery charges (44%)
  4. Good pictures of products (37%)
  5. Lots of delivery options (31%)
  6. Great customer service (21%)
  7. Made in New Zealand (17%)

Source: NZ Online Shopper Survey 2018 

 
Continue to:   Food, Groceries & Liquor
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