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Down, but not out
Paymark’s figures confirm the unsurprising large drop in consumer spending during the two weeks of Level 4 lockdown in New Zealand.
Payments processed by Paymark through merchants in the core retail sector were down 34% to $975 million in the 14 days ending 31 August 2021, versus the same 14 days in 2020. (NOTE: Payments through Paymark are largely through onsite payments but do include some e-commerce payments.)
The difference between the first and second half of the month shows up in a breakdown by sector for each of the two weeks. Spending at Food and liquor shops was up 14% on last year, down 20% at Pharmacies and on average was down 82% amongst the remaining Non-food retail stores. Within the hospitality sector, spending was 80% down amongst Accommodation providers and 93% below levels from a year ago across the Food and beverage service sector.
Again, of no surprise, shoppers stocked up on the Tuesday before Level 4, with spending through Food and liquor shops rising 86% in comparison to the same day last year, a sharp increase on the 1% average for the first 17 days of the month. Elsewhere, annual growth rates had been generally strong before Level 4, in part reflecting the lockdowns that had occurred in August last year as well. The spending change between August 2020 and August 2021 for Core Retail merchants was -12%.
| Grouping of merchants | Annual growth* 1-17 AUG | Annual growth* 18-31 Aug |
| Food and liquor shops | 1.4% | 14.3% |
| Non-food retail stores except Pharmacies | 6.0% | -82.1% |
| Pharmacies | 5.3% | -19.9% |
| Accommodation | 20.9% | -79.9% |
| Food and beverage services | 19.0% | -93.4% |
| CORE RETAIL | 6.6% | -33.9% |
Figure 1: All Cards NZ underlying spending through Paymark for core retail merchants per day in August 2021 versus same days of the week in 2020 and 2019 (* Underlying spending excludes large clients moving to or from Paymark)
The regional pattern for the lockdown was similar, albeit not exactly the same during the 14 days. The annual decline was largest in Bay of Plenty (-46%), Marlborough (-46%), Nelson (-45%) and Otago (-44%). The decline was least in Auckland/Northland (-22%) but this reflects the tighter lockdown status of Auckland in 2020. Compared to 2019, the Auckland/Northland decline was -42%, near the national average.
| PAYMARK All Cards Data for 14 days ending 31-Aug-2021 for Core Retail merchants | |||
| Value | Underlying* | Underlying* | |
| Region | transactions $millions | Annual % change on 2020 | Annual % change on 2019 |
| Auckland/Northland | 350.9 | -22% | -42% |
| Waikato | 74.5 | -39% | -35% |
| BOP | 59.2 | -46% | -44% |
| Gisborne | 10.2 | -36% | -31% |
| Taranaki | 20.8 | -40% | -36% |
| Hawke's Bay | 35.1 | -34% | -29% |
| Wanganui | 13.8 | -32% | -30% |
| Palmerston North | 28.7 | -39% | -34% |
| Wairarapa | 13.4 | -27% | -17% |
| Wellington | 102.9 | -39% | -37% |
| Nelson | 17.4 | -45% | -42% |
| Marlborough | 11.4 | -46% | -41% |
| West Coast | 6.7 | -34% | -29% |
| Canterbury | 112.9 | -41% | -38% |
| South Canterbury | 17.4 | -34% | -31% |
| Otago | 51.3 | -44% | -49% |
| Southland | 23.0 | -42% | -41% |
| New Zealand | 974.9 | -34% | -39% |
Figure 2: All Cards NZ underlying spending through Paymark for core retail merchants by region for 18-31 August 2021 versus same days of the week in 2020 and 2019 (* Underlying spending excludes large clients moving to or from Paymark)
Paymark also processes payments for automotive and non-retail merchants which are not reported above.
Note to editors:
These figures reflect general market trends and should not be taken as a proxy for Paymark’s market share or company earnings.
About Paymark
We are New Zealand's leading payments innovator.
At Paymark we design, build and deliver payment solutions that help Kiwi business succeed. Whether you’re looking for in store, online or mobile payment solutions or powerful business insights, Paymark is here to help.
It is technology, backed by experience.
About Worldline
Worldline is the European leader in the payments and transactional services industry and #4 player worldwide. With its global reach and its commitment to innovation, Worldline is the technology partner of choice for merchants, banks and third-party acquirers as well as public transport operators, government agencies and industrial companies in all sectors. Powered by over 20,000 employees in more than 50 countries, Worldline provides its clients with sustainable, trusted and secure solutions across the payment value chain, fostering their business growth wherever they are. Services offered by Worldline in the areas of Merchant Services; Terminals, Solutions & Services; Financial Services and Mobility & e-Transactional Services include domestic and cross-border commercial acquiring, both in-store and online, highly-secure payment transaction processing, a broad portfolio of payment terminals as well as e-ticketing and digital services in the industrial environment. In 2019 Worldline generated a proforma revenue of 5.3 billion euros. worldline.com
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