Online retail sales in New Zealand rose by 10 per cent in May in line with the growth rates seen over the past 12 months.

Gary Baker, director, Institutional Research, Bank of New Zealand,  said the growth seen for the month, however, was lower compared to the previous year where the annual growth rate was running close to 14 per cent.

Online spending at domestic sites was up 11 per cent  compared to May last year.  In contrast, spending at local bricks-and-mortar stores was only up three per cent on the prior May.

Food, clothing and electrical goods are large categories and continue to show strong growth in sales at domestic online sites. Entertainment media and the furniture/houseware/hardware group also grew sales strongly, but these are smaller categories for online retail sales.

Clothing spending at local e-tailers was up 13 per cent on last May, but at offshore sites clothing spending was flat compared with last May.

Online spending at international merchants was up eight per cent compared to May last year. Two categories in particular stood out: Spending at overseas online computer stores was up almost 30 per cent compared to a year ago; and spending at overseas online entertainment media stores was up 23 per cent compared to a year ago.