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

 

RWC spending set to improve recent months’ soft trading


RWC spending set to improve recent months’ soft trading conditions


The latest figures from Paymark suggest that the spending boost expected to accompany the RWC will come as a welcome relief to retailers, with soft trading conditions across most sectors defining the last couple of months.


The value of transactions through the Paymark network increased 3.2 per cent (year-on-year) in July and 4.1 per cent in August. Both of these rates, as well as the average of 3.7 per cent for the two months, are below the 4.4 per cent growth rate averaged in the first half of the year.


The spending slowdown across the last two months appears to be have occurred across many industries and regions and Paymark Head of Sales and Marketing, Paul Whiston, says that the figures are typical of a mixed trend that has been noticeable over the past 12 months.


“It’s been fairly flat out there with sectors experiencing highs and lows at different points throughout recent months. This pattern has come through consistently over the past year and I think it would be fair to say that few businesses have escaped the mixed spending patterns, ” he says.


Of particular interest during the last month were department stores (-3.6 per cent year-on-year) and furniture stores (-5.5 per cent year-on-year) where spending remains below year ago levels. In addition to this, food/liquor stores (+7.8 per cent year-on-year) and hospitality outlets (+6.6 per cent year-on-year) show higher spending than the previous year, but the annual growth rate has declined from the higher levels of previous months.

Paul Whiston adds that the last two months’ trading will provide a reference point for comparisons during the RWC, and advises that the Paymark network is ready to process a huge increase in the volume of payments.

“New Zealand retailers are ready for this. Our network is ready to handle the increased volume of transactions and with the national upgrade of terminals that was completed in June we are all set to make the most of this exciting opportunity,” adds Paul Whiston.


Noticeably, annual spending growth was above the year-to-date average in Auckland/Northland (+7.0 per cent) during August – second only to Bay Of Plenty (+7.3 per cent) – so the extra RWC boost will make for generally strong trading conditions for many Auckland outlets.

Conversely, merchants in other regions including those experiencing slow-to-negative annual growth between August 2010 and August 2011 such as Wairarapa (+0.3 per cent), Canterbury (-3.5 per cent) and Marlborough (-2.4 per cent) will be looking for a kick-start from the RWC.


The number of card transactions for August was 2.6 per cent higher than a year ago with debit card use growing 3.2 per cent and credit cards experiencing low growth of 0.7 per cent.


-ENDS-

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


FIRST Union: Do Shareholders Realise Marsden Point Conversion Could Cost More Than Half A Billion Dollars?

FIRST Union, the union representing workers at Refining NZ, are querying whether shareholders voting on Friday on whether to convert the Marsden Point refinery to an import-only terminal realise the conversion could cost $650-700 million dollars... More>>



Civil Contractors: Massive Rebound In Civil Construction Business Confidence

New Zealand’s civil construction industry is riding a massive rebound in post-pandemic business confidence – but this may be undermined by skills shortages, which continue to be the industry’s number one challenge... More>>



Energy: Feeling Our Way Towards Hydrogen - Tina Schirr

Right now hydrogen is getting a lot of attention. Many countries are focusing on producing hydrogen for fuel, or procuring it, or planning for its future use... More>>





ASB: New Support Finder Tool Helps Connect Customers With Thousands In Government Support

ASB research alongside benefit numbers from the Ministry of Social Development shows an increased number of Kiwis are struggling financially, and many may not be aware they’re eligible for government support... More>>


Housing: New Home Consents Continue To Break Records

A record 44,299 new homes were consented in the year ended June 2021, Stats NZ said today. “The annual number of new homes consented rose again in the June 2021 year, the fourth consecutive month of rises,” construction statistics manager Michael Heslop said... More>>


Real Estate: June Home Transfers Remain High
There were 44,517 home transfers in the June 2021 quarter, the highest June quarter figure since 2016, Stats NZ said today. The number of home transfers was very similar to the March 2021 quarter and was up 18,252 from the June 2020 quarter... More>>