Online retailers are rejoicing in generally difficult times with a big surge in online spending recorded across the country. Online spending unsurprisingly surged during July however it was the size of the increase that took many by surprise. July recorded a 62.6 percent year on year increase in online spending. This huge increase is five times the rate of bricks and mortar store sales growth.
The result had a lot to do with the increased lock down restriction imposed on Victorians forcing them to go shopping online. Online sales in Victoria almost doubled and much of their spending was focused on fashion, food, liquor and games.
The proportion of online retail sales that make up the retail spending in general has shot up from 8 per cent last year to 11 per cent. The level of spending has obviously jumped due to the Covid pandemic however how high it will go is a point of contention. Some experts are predicting that it could reach up to 20 percent within a few years. This would have detrimental affect on bricks and mortar stores and would like lead to closures of stores and lower rents in shopping strips.