Earthquake Hits Canterbury’s Economy Hard

Earthquake Hits Canterbury’s Economy Hard

Figures just released by Paymark show that businesses in the Canterbury region are trading almost one-third less than the same time last year in the wake of the earthquake that shook the region early on Saturday morning.

Total spending across the Paymark network in Canterbury between 04 and 05 September was down 32 per cent - an $8.1 million year-on-year deficit.

All retail sectors were badly affected during weekend trading, with Saturday sales down 43 per cent and Sunday sales down 18 per cent on last year.

Amongst some of the hardest hit over the weekend were stores that would normally be experiencing an increase in sales due to Father’s Day including Gift stores (- 81 per cent), Camera/Photo shops (- 79 per cent) and Electronics stores (- 77 per cent).

Paymark CEO Simon Tong says that the company is working closely with all relevant parties to provide the resources and support necessary to help retailers get back on their feet as quickly as possible.

“EFTPOS is a crucial part of everyday business. We’ve been working closely with banks, telecommunications companies and our partners to ensure that our network continues to operate smoothly for these retailers,” says Simon Tong.

“We’re doing all that we can to help those affected by the crisis and are offering businesses that have been unable to trade over the past few days a waiver on some, or all, of their terminal fees to help ease the burden,” he adds.

The weekend’s trading deficit comes on the back of a tough month for Canterbury, with year-on-year statistics showing the region was down 0.6 per cent for the month of August.

Difficult winter trading was also felt by much of the country with spending outside of petrol stations and supermarkets down by 0.4 per cent on August 2009, and annual growth of only 0.2 per cent over the last four months, an experience reminiscent of the tough November – February period of 2008/9.

Some regions continue to experience growth despite the winter blues, with the West Coast (+ 5.1 per cent) and Palmerston North (+ 4.7 per cent) experiencing the fastest growth rates in August.

Sectors to experience increasing sales in August include Hotels (+ 8 per cent) and Car Parts/Servicing Outlets (+ 5 per cent).

Father’s Day spending across the country (excluding Canterbury) provided some light relief for some sectors with Dad’s being treated to Jewellery/Watches (spending + 21 per cent Friday-Sunday on last year), Household Appliances (+ 23 per cent Friday – Sunday on last year) and a meal out on Sunday, with restaurants up 10 per cent on the day.

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