34% of online shopping dollars going offshore

In its second report analysing online trends in New Zealand, PricewaterhouseCoopers (PwC) has released a study stating that the online shopping market will reach $2.68 billion in New Zealand this year, although 34% of that is to be spent offshore.

Almost half of the New Zealand population will shop online this year, PwC says, spending an average of just under $1400.

Online spending counts for 5.1% of all retail sales, around the same as in Australia but slightly less than the USA and the UK, with 7.5% and 9% respectively.

Stuart Harker, PwC global retail & consumer advisory leader, says the figures point to a structural shift in the New Zealand retail environment.

"Large and small retailers alike are facing stronger than ever competition from digital channels, both here and overseas,” Harker says.

"Lower prices, convenience, greater product range and a growth in mobile devices are all factors fuelling online shopping.”

More than one third of study participants reported using a smartphone or tablet to buy products online.

Go here to read PwC’s report on online advertising spending, or here for our story on the uptake of the internet by New Zealand businesses.