STOCK WATCH: E-Com Index Down 12%

Natasha Sholl By Natasha Sholl | 13 Apr 2022

It’s been another horrific week on the ASX for E-Commerce, severely underperforming compared to the ASX200.

Last week, Cettire seemed to be the outlier when it came to its abysmal performance on the ASX. The E-Commerce Index was the benefactor of a change in investor sentiment, with the online retail and tech sector once again back in favour. Yet it was only short-lived.

Cettire is still the worst performer on the E-Com Index, down 21.7% over seven days, now under a dollar at $0.97, and recording another 52-week low. While Adore Beauty and Kogan were showing signs of uplift last week, they’ve once again experienced a dip, down 14.1% and 11.4%, respectively.

There’s some good news for Booktopia, up 3.4% over the last seven days, now at $0.76, and the best performer on the ASX Listed E-Commerce Index. It’s been interesting to watch this trajectory, with investors seeming to have a wait-and-see approach when it comes to the pureplay book retailer. MyDeal is the only other online retailer on the Index showing signs of growth in the last week, now up (just) 0.9% to $0.59.

Redbubble, Temple & Webster and BikeExchange all shed more than 10% in the last week, with BikeExchange down to $0.06 (-10.8%), Redbubble down to $1.30 (-16.9%) and Temple & Webster down to $6.20 (-11.7%).

ASX Listed E-Com Index 13 April

Source: ASX Listed E-Com Index based on ASX reporting for the period

While it was hoped that the boost we saw at the beginning of April would be a sign of things to come, that upwards trajectory has not been maintained. The ASX Listed E-Commerce Index shed 12% over the last seven days, underperforming compared to the ASX200, which lost 0.9%.

It seems inflationary pressures, global supply chain issues and the ongoing Ukraine crisis, as well as pre-election economic uncertainty, has understandably impacted share prices for online retailers. It looks like we should strap in for another few months of upheaval, with the flow on from the pandemic as well as the above mentioned pressures unlikely to ease in the short term. While it’s clear that the potential for e-commerce growth is enormous with consumers relying on digital more now than ever before, investors are still looking for certainty elsewhere.

Figures are current as at close of ASX on 12 April 2022. This is analysis only and not intended as investment advice.

The e-commerce landscape is changing. With a Power Retail Switched On membership, you get access to current e-commerce revenue and forecasting, traffic levels, average conversion rate, payment preferences and more!

0 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

[class^="wpforms-"]
[class^="wpforms-"]