Noel Leeming: Consumers Likely To Keep Buying

For Immediate Release
MEDIA RELEASE
8 October 2007

Noel Leeming Group Says Consumers Likely To Keep Buying

New Zealand’s leading appliance and electronics retailer Noel Leeming Group believes consumers will not be as affected by housing prices or finance sector issues as some economists are predicting.

Responding to media reports saying the housing price slide could cause a slump in consumer sales and credit availability, Noel Leeming Group CEO Andrew Dutkiewicz says many signs instead point to continuing consumer confidence.

“The labour market is really buoyant, employment is at an all time high, the average weekly income rose 9.4% in the 12 months to June, and the high New Zealand dollar has made imported goods cheaper.

“All these factors offset consumer concerns. On top of this, consumers are getting some great prices on goods – a trend which is likely to continue well into Christmas.”

Dutkiewicz says many of the top brands introduce sharp prices on their products pre-Christmas which will also stimulate consumer demand. “For instance, this week we will be advertising a new model PlayStation 3 for only $799 - the previous price for any PS3 model was $1199. “

“In addition highly specified branded laptops are selling for under $1,000 and there has even been a 3G Vodafone mobile phone for less than $300. As well, the cost of flat screen televisions has come down 18% in the past 12 months.

“We are confident that the combination of these factors will ensure ongoing consumer demand,” Andrew Dutkiewicz says.

Year on year sales figures for the Noel Leeming Group show sales are well up on the same period last year with major growth areas in TVs, gaming and laptops. The company expects sales to continue strongly into the Christmas period.

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