Kiwis spend over $2.3 billion in the first half of December

Kiwis spend over $2.3 billion in the first two weeks of December

Auckland, Monday 15th December 2014: Christmas spending remains steady according to Paymark statistics with an increase of 4.3% growth recorded during the first 14 days of December compared to the same period last year.

Total spending to date in December is at $2.3 billion, compared to the $2.2 billion spent during the same period last year. The total number of transactions processed since December 1st totals 46.7 million compared to 43.9 million in 2013.

Paymark’s Head of Sales & Marketing, Paul Whiston says the past 14 days show a steady start to Christmas spending with two big shopping weekends yet to come. “Despite lower petrol prices impacting on the overall spend, the annual growth rate (excluding fuel) is still a solid 5.7%.”

Whiston says spending within the entertainment and hospitality sector over the past 14 days has been strong, up 9% on the same period last year. “This may reflect the annual Christmas celebrations being particularly buoyant but we’ve seen consistent growth in this sector throughout 2014. It may also be due to an increase in domestic and international tourism in places such as Nelson and Otago where growth is strong.” The entertainment and hospitality sector also includes accommodation, cafes and bars.

This time last year, Friday December 13 was recorded as the busiest shopping day of the month and second busiest of the year. Figures continued to climb and peaked on Christmas Eve.

Whiston says it’s important to provide context when it comes to spending in December. “We know from Met Service figures that it’s been the coldest start to summer since 2006 which may influence shopping behaviour. Additionally, an increasing number of retailers are starting their Boxing Day sales before Christmas. This may result in an increase in the number transactions we’re processing but the value may be slightly lower.”

Key statistics:

• Regions performing well over the past 14 days include Nelson up 7.7% and Otago with 7.2% growth. Spending in the Bay of Plenty also grew by 5.2% with Auckland/Northland up 5% on the same period last year.
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• Spending in Wellington is off to a slow start and regions that show a decrease in spending include Taranaki, the West Coast, Southland and South Canterbury (see table below).
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• Spending at supermarkets is also strong, up 7.9% from 2013.
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• Stores relating to building and housing (including furniture and appliances) are showing a 7.2% increase compared to the same time last year.
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• Spending on books and video is up by 6.0%.
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• Spending on clothing, apparel and jewellery is slow at 1.3%.
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PAYMARK Regional Data (1-14 Dec 2014 versus same dates 2013)
Volume (million transactions) Value of spending ($millions)
Region Last Year Current Year Volume Difference Last Year Current Year Value Difference
Auckland/Northland 17.27 18.62 7.8% $903.1 $948.5 5.0%
Waikato 3.25 3.48 7.2% $159.5 $165.3 3.6%
BOP 2.79 3.01 7.7% $140.3 $147.5 5.2%
Gisborne 0.43 0.44 3.5% $19.2 $19.5 1.3%
Taranaki 1.05 1.07 2.0% $50.6 $49.9 -1.3%
Hawke’s Bay 1.29 1.32 2.4% $61.5 $62.5 1.7%
Wanganui 0.48 0.51 6.3% $20.7 $21.5 3.8%
Palmerston North 1.37 1.42 3.5% $73.2 $74.2 1.4%
Wairarapa 0.42 0.44 4.9% $19.9 $20.3 1.7%
Wellington 4.82 4.97 2.9% $218.4 $221.4 1.4%
Nelson 0.84 0.90 6.5% $43.2 $46.5 7.7%
Marlborough 0.48 0.49 3.4% $25.4 $26.2 2.9%
West Coast 0.27 0.28 3.4% $15.1 $15.0 -1.1%
Canterbury 5.06 5.31 5.0% $260.4 $268.8 3.2%
South Canterbury 0.69 0.70 1.3% $38.1 $37.5 -1.7%
Otago 2.20 2.36 7.3% $114.0 $122.3 7.2%
Southland 1.02 1.01 -0.5% $54.2 $52.2 -3.8%
New Zealand 43.93 46.72 6.3% $2,232.9 $2,328.1 4.3%
Note: History shows that changes in Paymark transactions are not always consistent with retail sales, as released by Statistics NZ, but they do provide a wide measure of household spending. Some Paymark transactions occur through merchants not currently considered part of the retail sector. Some electronic sales are transacted through other switching houses and there remains spending with cash, cheques or other non-electronic means. Paymark spending includes any GST paid to the merchant, and also includes cash withdrawals at the time of purchase.

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