Australia’s slow economy puts brakes on online retail
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Online retailing has been belted by Australia’s economic woes, with November’s sales figures recording the slowest monthly and annual growth since the series was first compiled.
And some bricks-and-mortar retailers are also doing it tough, with shares in outdoor equipment retailer Kathmandu plunging 20 percent after poor Christmas sales forced the company to issue a profit warning.
According to National Australia Bank, not only are November’s online sales down 0.2 percent on October, they are only 3.9 percent higher year-on-year.
Questions & Answers
Q.What specifically indicates the slowdown in Australia's online retail sector?
What specifically indicates the slowdown in Australia's online retail sector?
November's online sales saw a 0.2 percent decrease compared to October. Also, the year-on-year growth for online sales was only 3.9 percent, marking the slowest monthly and annual growth since data compilation began.
Q.Which specific company has been negatively impacted by current retail conditions?
Which specific company has been negatively impacted by current retail conditions?
Kathmandu, an outdoor equipment retailer, has been affected. Its shares fell by 20 percent after poor Christmas sales performance, leading the company to issue a profit warning to investors.
Q.Which organisation provided the sales figures for the online retail sector?
Which organisation provided the sales figures for the online retail sector?
The National Australia Bank (NAB) provided the figures. According to their data, online sales in November were down 0.2 percent on October and only 3.9 percent higher year-on-year.