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


Spending effect of All Blacks

Spending effect of All Blacks

tests in June 2016

Auckland, 14 July, 2016

The fans came and went but did they spend more money? The spending effect of the All Blacks-Wales tests was mixed in the three regions that hosted a test.

In Auckland/Northland, there was an increase in spending amongst those merchants sectors typically associated with major events – for example, accommodation and hospitality providers – but there was also lower spending amongst competing merchants – for example, movies theatres and art galleries. On balance, there was little net discernible effect of the 1st test on overall spending amongst these merchants.

In Wellington, a similar partial offset occurred between the event-sensitive merchants, but overall the net spending effect was around an extra $0.9 million, a spending lift of 3.1% for Wellington.

A similar effect occurred in Otago, with the net spending increase of around $1.2 million, which translates into a larger percentage increase of 6.7%.

The moral of the story: spending does appear to accompany test matches but the effect is more noticeable in a smaller region.

Table 1. Change in underlying spending* through Paymark merchants on Fri-Sun of All Black test, relative to annual growth over 21 days ending 26 June 2016

Spending measure and RegionAuckland & NorthlandWellingtonOtago
Event-sensitive merchants (+)**$581,222$1,390,389$1,226,565
Event-sensitive merchants (-)**-$556,576-$301,158-$34,320

* Underlying spending is measured by removing from total transactions those due to large merchants known to have partially or fully entered or exited from the Paymark merchants’ network in the last 12 months.

** Merchants categories that showed sensitivity to the test in their region were grouped as Event-sensitive merchants, and further differentiated as those typically responding with higher spending (+) and those with lower spending (-).

Graphs of effects:

Spending relative to trend for sectors typically showing sensitivity to events, either positive or negative

The following table illustrates some of the spending responses on the days around the test for sectors typically sensitive to events. Annual growth for the sector on each day was compared with the average annual growth over the 21 days ending 26 June. Growth for any one day was then classified as above or below the 21 day trend.

For example, annual spending growth at Auckland/Northland liquor outlets was 0-10% above the 21-day trend growth rate on the Friday, Saturday and Sunday of the 1st test. This sector in Otago during the 3rd test was 0-10% below trend on the Fridayand Sunday but up over 20% on the Saturday of the test. It is typical to see higher spending amongst these merchants around such events.

Conversely, spending through Paymark at movie theatres was more than 20% below trend in the test regions on most days around the tests; the exception between in Wellington on the Friday before the 2nd test when spending at movie theatres was 0-10% above the trend at the time. It is typical to see lower spending amongst these merchants around such events.

Note, Paymark is simply reporting the spending patterns observed for selected merchant categories on these dates and is not in a position to know the reason for any spending change. In some cases, changes in spending may be coincidental rather than due to the test in town. For example, the similar spending patterns amongst “adult entertainment” and “florists” merchants over these weekends may just be a chance event.

Key to table:

--- >20% below trend 21-day annual growth trend

-- 10-20% below trend

- 0-10% below trend

+ 0-10% above trend

++ 10-20% above trend

+++ >20% above trend

Merchants grouped by typical event sensitivityAuckland testWellington testDunedin test
Event-sensitive (positive) sectors
Liquor outlets++++++----+++-
Bread And Cake Retailing-+++++++++++
Takeaway Foods---++++-++++
Specialised Food Retail--++-++++++++++++-
Watch And Jewellery Retailing+++++++-+++---+++---
Pubs, Bars And Taverns--+++++++++-++++++
Recreational Sports/Clubs---++-+++++++++++++++---


© Scoop Media

Business Headlines | Sci-Tech Headlines


CTU 2021 Work Life Survey: COVID And Bullying Hit Workplaces Hard, Huge Support For Increased Sick Leave

New data from the CTU’s annual work life survey shows a snapshot of working people’s experiences and outlook heading out of 2020 and into the new year. Concerningly 42% of respondents cite workplace bullying as an issue in their workplace - a number ... More>>

Smelter: Tiwai Deal Gives Time For Managed Transition

Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed to working on a managed transition with the local community,” Grant Robertson said. More>>


Economy: Strong Job Ad Performance In Quarter Four

SEEK Quarterly Employment Report data shows a positive q/q performance with a 19% national growth in jobs advertised during Q4 2020, which includes October, November and December. Comparing quarter 4, 2020, with the same quarter in 2019 shows that job ad volumes are 7% lower...More>>

NIWA: 2020 - NZ’s 7th-warmest Year On Record

The nationwide average temperature for 2020, calculated using stations in NIWA’s seven-station temperature series which began in 1909, was 13.24°C (0.63°C above the 1981–2010 annual average). New Zealand’s hottest year on record remains 2016, when... More>>

Quotable Value New Zealand: Property Market Set To Cool From Sizzling To Warm In 2021

Nostradamus himself could not have predicted the strange series of events that befell our world in 2020 – nor the wild trajectory of New Zealand’s property market, which has gone from “doom and gloom” to “boom and Zoom” in record time. Even ... More>>

PriceSpy: Research Reveals How Shopping Behaviours Have Changed This Christmas

According to a new survey* from PriceSpy , almost 50 per cent of Kiwis are looking to shop locally this Christmas in light of Covid-19; The research also found consumers are changing their shopping habits, with one in seven (14 per cent) getting super-organised ... More>>