Domestic online retail spending in New Zealand has risen 12 per cent compared to June last year, according to a report by the Bank of New Zealand.

Strong growth in the Grocery, Electronic and Computer categories was responsible for half of the year-on-year increase in domestic spending, which outpaced growth in spending at traditional stores, only growing by 3 per cent compared to June last year.

According to the report spending at domestic sites as outpaced growth in spending at international sites for the past 4 months.

Over all, online retail spending increased by 10 per cent for the year, bolstered by spending at international merchants rising 7 per cent, with online spending at overseas Entertainment Media stores and Computer stores up 20 per cent compared to a year ago.

In total terms, the Electronic Goods category grew the most at 14 per cent, with Clothing, Footwear and Accessories trailing behind at 13 per cent. Variety, Department and Other grew by 11 per cent, while online Grocery and Liquor spending rose by 10 per cent, with Furniture, Housewares and Hardware tied at 9 per cent with Recreation, Toys, Games and Books.

Lastly, online spending on Pharmacy, Cosmetics, Stationery, Antiques and Flowers grew by 1 per cent.