Online retail spending up 9pc in October

Growth in online spending on groceries and department stores was also strong in October.

According to BNZ and Marketview's latest monthly report, online retail spending is up nine per cent compared to October last year, a slower growth rate than expected.

The New Zealand Online Retail Sales report for October suggests the softening of growth is likely due to the timing of purchases, not a slowdown in trend.

Pharmaceutical and cosmetics goods, along with entertainment media were top sales contenders with growth rates increasing by 35 and 26 per cent.

Clothing and apparel purchases jumped up by 17 per cent, as did newspapers and books, up by 21 per cent.

The report outlines growth in online spending on groceries and department stores was also strong in October.

Marketview's managing director Stephen Bridle said despite the consistent upward trend, he was surprised the increases for October were not a little higher.

"Following the lead up to Christmas, October and November are usually big months for retail."

He said a reason behind the lower outcome could be the result of growing consumer confidence.

"People these days are a lot more comfortable holding back on purchases."

He said online retail spending is increasing at such a rapid rate that it is hard to forecast its next move.

Domestic merchants appeared to gain further momentum over October, while overseas purchases slowed down. The report was unable to specify whether this was due to a low exchange rate.

"New Zealand retailers are starting to offer competitive delivery times and rates on products which no doubt will be an influencing factor on consumers choosing to buy online domestically."

Bridle said the popularity of exclusive online-only sales like Cyber Monday and Black Friday increases the lure to shop online.

The results of November's online retail spending are expected to be much higher.