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


Key Consumer Spending Trends For Investors To Gain Insights

New Zealand witnessed a paradigm shift in consumer behaviour as the lockdown sparked increasing reliance on online channels. Going digital became the most powerful tool to fight against the coronavirus scenario, empowering companies to sustain their business operations for early financial recovery.

The country has gradually progressed towards a safe harbour, and business operations are picking up the momentum. Most importantly, the Government’s efforts through fiscal support for employment generation and financial aid to businesses helped the nation emerge from the COVID-19 crisis. The flattened curve with no new active cases is NZ success story against the pandemic.

On Friday, NZ Finance Minister Grant Robertson indicated that the traffic volume is approaching normal and the electricity demand is already back to pre-lockdown levels.

Now, as businesses are gearing towards a pre-COVID scenario, investors are keenly eyeing consumer spending pattern considered crucial in steering the market momentum. The green shoot of recovery would undoubtedly depend upon consumer spending to reboot the entire economy.

Let us look at some key consumer spending trends to get a picture of NZ market during the pandemic.

Liquor Sales

The stockpiling of liquor along with essential supplies dominated the purchasing trends during the lockdown. As bars and clubs remained shut, people panic-bought alcohol at the stores. Yet, there has been a 29% fall in food and beverage sales compared to the previous year.

Bars, clubs and pubs reopened on 21 May 2020 signifying further growing prospect for liquor sales.

In the equity space, share price of beverage company Moa Group Limited (NZX: MOA) has increased by ~4.6% to $0.18 in the past one month as on 22 May. Meanwhile, Foley Wines Limited’s (NZX: FWL) stock edged up by 6.06% in a day trading session to close the week at $1.75. Notably, FWL has posted a positive return of about 8.7% in last one month.

Pharmacy Sales

Essential pharmacy business remained at the forefront amid the lockdown to provide necessary health support to the country. Sale of PPE equipment, gloves, masks and sanitisers skyrocketed during the lockdown with online deliveries acting as a catalyst to pharmacy sales.

Paymark, NZ leading payments innovator, reveals that the average spending at pharmacies and fruit/vegetable shops picked up by 13% in Level 3 and 27% in Level 2 compared to last year.

Supermarkets Spending

Global supermarkets have been in the limelight with abundant online orders and long queues outside the stores. The industry players were able to cash in on the substantial gains made during the strict lockdown measures.

Online supermarket stores such as Service Foods Home and Countdown’s Rototuna supermarket that provides drive-thru services have revamped the face of grocery shopping in a bid to contain the community transmission of virus.

On equity market front, Investore Property Limited (NZX: IPL) that leases property to big-box retailers has seen a rise in its share price by over 23% since the lockdown was first imposed in NZ on 23 March, closing at $1.71 on 22 May 2020. Meanwhile, the stock of the supermarket giant The Warehouse Group Limited (NZX: WHS) closed at $2.09 on Friday, posting nearly 39% return since the lockdown, majorly taking cues from the growth in its Foodbox online delivery services.

Café and Restaurants Spending

Employees in cafes and restaurants are back to work in the Level 2 lockdown, signalling positive hopes for businesses battered by the crisis. While Level 3 was marked by long queues collecting fast-food takeaways, the now operational level 2 has allowed customers to savour their appetite with various dine-in services. However, social distancing norms remain in place for avoiding the rise in infection.

Fast-food giants such as McDonald’s and KFC plan to gradually reopen their dining services. It seems that restaurant players that stayed afloat through online deliveries may soon get back to pre-Covid scenario bringing in the hopes of higher cash inflows.

Looking at stock market scenario, Restaurant Brands New Zealand Limited (NZX: RBD) saw its stock rising by around 11% in the past one month to $12.55 as at 22 May 2020. Besides, Burger Fuel Group Limited (NZX: BFG) noted the appreciation of 80% in its stock price during the lockdown to date, closing at $0.45 on 22 May 2020.

Energy Efficient Products Sale

With winter around the corner, the threat of financial instability has made many Kiwis look at the option of adopting energy-efficient routes like solar lights. Households and businesses expect higher electricity bill as the lockdown compels Kiwis to stay at home.

NZ solar energy services company, Solarcity stated that New Zealanders are demanding cheaper and cleaner energy. Besides saving money, it has spurred a more than a decade long battle for environmental conservation.

Focussed on renewable energy generation and retailing, Mercury NZ Limited (NZX: MCY) has gained more than 25.24% in the past one year. The stock closed at $2.740 on 22 May 2020.

While businesses have adopted digital models that add a new matrix in their operational chain, increasing reliance on contact-less services amidst convenience and safety considerations seems to be the new normal. Moreover, evolution of consumer spending pattern amidst unprecedented times will define the future of retail, hospitality, health care and energy space.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Freight: New Report On Auckland Port Relocation

The Government has released a major new report on the options for relocating the Port of Auckland’s freight operations while deferring any decision on the issue. More>>


Chartered Accountants: COVID-19 Fails To Knock Kiwi Investor Confidence, But More Disclosure Wanted

Three months of COVID-19 lockdown and investment turmoil has done little to knock confidence in New Zealand capital markets and listed companies with overall investor sentiment very similar to 2019, an investor survey held in mid June shows. However, ... More>>


Taxation: Black-Market Tobacco Sidesteps $287 Million In Excise Tax

Year-on-year increases in consumption of illicit tobacco in New Zealand have seen illegal trade swell to 11.5% of the total market. If consumed legally, illicit products would have netted the Government $287 million in excise tax during 2019. Independent ... More>>


Energy Sector: Meridian Spilled Water To Hike Electricity Prices - Authority Ruling

The Electricity Authority has found that generator Meridian Energy manipulated the power market, costing consumers about $80 million. More>>


XE Data Update: RBNZ Official Cash Rate Decision

The RBNZ will keep the Official Cash Rate (OCR) at 0.25%. T he key points in the RBNZ statement are: RBNZ keeps the OCR unchanged at 0.25% Maintain the LSAP (large scale asset purchase) at NZD$60 billion. Committee prepared to use additional monetary ... More>>


Electricity: Kiwis Ignore Promise Of Cheaper Power

Electric Kiwi and Flick Electric Co are joint winners of Canstar Blue’s award for Most Satisfied Customers | Electricity Providers From putting on an extra layer – rather than turning on a heater – to turning off lights and choosing the energy-saving ... More>>


Electricity: Transmission Pricing For A Low Carbon Future

The Electricity Authority has decided on new guidelines for transmission pricing. James Stevenson-Wallace, Chief Executive of the Electricity Authority says the new guidelines will deliver significant benefits to consumers, through lower electricity ... More>>


NIWA: The Climate Record That Keeps Getting Broken

Among the multitude of New Zealand climate statistics there is one record that continues to be broken month after month. Since January 2017 there has not been one month that recorded a below average nationwide temperature, according to NIWA’s seven station ... More>>


Govt: Extended Loan Scheme Keeps Business Afloat

Small businesses are getting greater certainty about access to finance with an extension to the interest-free cashflow loan scheme to the end of the year. The Small Business Cashflow Loan Scheme has already been extended once, to 24 July. Revenue and Small ... More>>


Science: 2019 Prime Minister’s Science Prizes Announced

The 2019 Prime Minister’s Science Prizes have been announced in a digital livestream event today. The Prizes recognise the impact of science on New Zealanders’ lives, celebrate the achievements of current scientists and encourage scientists of the ... More>>


RNZ: Fuel, Alcohol Costs To Go Up From Today

The increase today in the taxes on fuel, road user charges and alcohol is being called a tone-deaf move. More>>


Stardome Observatory: Young Kiwi Astro-Photographer Shoots For The Stars

Matariki by Josh Kirkley. The stars are aligning for up-and-coming Auckland-based astro-photographer Josh Kirkley (Kāi Tahu). During lockdown, one of his images was picked up by NASA and shared on the space agency’s Instagram to its 59.2 million ... More>>

DCANZ: Time For EU To Commit To A Level Playing Field For Trade

The Dairy Companies Association of New Zealand (DCANZ) has welcomed New Zealand Trade Minister David Parker’s statement that it is unacceptable for New Zealand exporters to continue facing an ‘unlevel playing field’ in the EU. Details leaked ... More>>


Potatoes New Zealand: Protecting NZ Fries As Part Of PNZ Pandemic Recovery & Transformation Plan

Potatoes New Zealand has met with Minister Faafoi this week to discuss investigating the potential importation of heavily discounted frozen potato chips into New Zealand. With MBIE’s support we are undertaking an investigation to gather evidence of the ... More>>


New Zealand Government: Supporting Kiwi Businesses To Resolve Rent Disputes

The Government will legislate to ensure businesses that suffered as a result of the COVID-19 response will get help to resolve disputes over commercial rent issues, Justice Minister Andrew Little announced today. More>>