Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Early spending showing slight lift for retailers

Early spending showing slight lift for retailers

Figures released today show a slight rise in national spending across the Paymark network, as Christmas fast approaches and Kiwis begin their search for the perfect gift.

November saw 4.6 per cent annual growth in value compared to November 2011, and a one per cent increase on October, according to Paymark, which processes about 75 per cent of all electronic transactions in New Zealand.

Paymark Head of Sales and Marketing, Paul Whiston, says the increase in pre-Christmas spending has followed the patterns of recent years.

“We have seen the usual lift in spending from mid-November and the last seven days of the month were up 10.4 per cent as compared to the last seven days of October.

“Looking at the past five years, this increase is in line with the average November spending trends, however despite the increase we are aware that for many retailers it is still tough going.

“Based on historic figures, we expect the real rush is yet to come. Between 2007 and 2011 spending jumped an average of 27 per cent, from November to December as Kiwis ramped up their card usage in anticipation of Christmas,” says Whiston.

The November figures suggest the party season is swinging into action, with Kiwi’s increasing their spending at cafes and restaurants (+9.3%) and liquor retailers (+10.0%). This is an improvement on the weak annual growth rate in these sectors in recent months. However, the sharp increase can be attributed in part to November 2012 having one more Friday than November 2011.

Annual growth also reached double-digits amongst hardware stores (+10.4%), consistent with the trend of more spending on housing in general. Other sectors to experience growth above the 4.6 per cent national average included automotive outlets (+7.9%) and clothing shops (+6.5%) – perhaps those looking for the perfect outfit for their workplace Christmas celebration.

“It’s great to see Kiwi’s getting into the Christmas spirit and spending across a diverse range of sectors; we hope to see retailers reaping the benefits in the coming weeks,” added Whiston.

Waikato surged ahead with the highest regional growth in spending between November 2011 and 2012 (+6.5%), followed by Canterbury (+5.7%) who has been leading the charge since June. Auckland/Northland (+5.2%) also experienced strong growth.

Nationwide, during November, the number of card transactions was 5.1 per cent higher than a year ago, with debit card usage (+5.2%) increasing faster than credit card usage (+4.9%) for the second month in a row.

PAYMARK Regional Data (November 2012 versus same month 2011)
Volume (million transactions) Value of spending ($millions)
Region Last Year Current Year Volume Difference Last Year Current Year Value Difference
Auckland/Northland 30.73 32.31 5.1% $1,561.6 $1,643.2 5.2%
Waikato 5.66 6.03 6.7% $277.9 $295.9 6.5%
BOP 4.92 5.08 3.2% $251.1 $257.6 2.6%
Gisborne 0.73 0.74 1.5% $33.9 $35.0 3.2%
Taranaki/Taupo 1.85 1.93 4.1% $90.1 $93.0 3.3%
Hawkes Bay 2.19 2.27 4.0% $106.6 $110.7 3.9%
Wanganui 0.87 0.90 3.0% $38.6 $39.3 1.9%
PalmerstonNorth 2.47 2.54 2.7% $126.4 $132.4 4.8%
Wairarapa 0.74 0.77 3.8% $36.1 $37.4 3.7%
Wellington 8.57 9.10 6.2% $396.5 $412.7 4.1%
Nelson 1.47 1.54 4.4% $76.4 $79.1 3.6%
Marlborough 0.82 0.84 2.3% $43.2 $43.7 1.1%
West Coast 0.51 0.54 5.7% $29.6 $30.8 4.1%
Canterbury 8.47 9.02 6.5% $435.3 $460.0 5.7%
South Canterbury 1.22 1.25 2.6% $67.7 $69.7 3.0%
Otago 3.92 4.08 4.1% $199.5 $205.6 3.1%
Southland 1.71 1.83 7.1% $94.1 $98.4 4.6%
New Zealand 76.87 80.80 5.1% $3,902.2 $4,082.5 4.6%
(growth rate this time last year) 2.0% 3.2%


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news