Aussie shoppers splurge online ahead of expected rate cuts
Australians have been buying up big online, with anticipated rate cuts and easing inflation tempting shoppers to take advantage of end-of-financial-year sales, according to Australia Post's latest Quarterly eCommerce Report.
Australians spent $19.2 billion online in the last quarter, figures from the Commonwealth Bank show.
End-of-financial-year sales helped drive a 15 per cent increase in online spending in the last quarter of the financial year, with 7.9 million Australian households choosing to shop online, according to Australia Post.
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Australia Post General Manager Enterprise and Government, Chelsea O'Reilly, said consumer sentiment appeared to be growing more positive.
Responding to easing inflation, the Reserve Bank cut interest rates by a quarter of a per cent in February and again in May, taking the official cash rate down to 3.85 per cent.
"With inflation cooling and consumer confidence returning, we're seeing more Australians shop online," O'Reilly said.
Shopper behaviour was also changing, with consumers having higher expectations, she added.
"Shoppers are spending more, but they're also expecting more in the way of speed, convenience and value. Retailers that put the customer experience first, through faster delivery and more flexible options will stand out in an increasingly competitive landscape."
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Department store spending spiked by 28 per cent during the quarter, as shoppers nabbed bargains in the sales.
Australians were making smaller and more frequent purchases, compared to the previous year, the Australia Post report found, with the average basket size down to $96 – a 1.6 per cent decline compared to 12 months prior.
Millennials spent the most online, racking up a total of $6.9 billion in purchases for the quarter, followed by Gen X ($5.3 billion) and Gen Z ($3.4 billion).
Gen Z recorded the biggest increase of any generation, seeing a 16 per cent growth on the previous year.
The most prolific online shoppers across the country were in Queensland, with residents in Toowoomba, Mackay, and Bundaberg buying the most, followed by residents in Point Cook, Victoria and Mandurah, Western Australia.
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