Grocery spending online up 42 per cent ahead of the alert level four lockdown

Tuesday, 28 April 2020

Online shopping spiked in March as the country prepared to go into lockdown.

New Zealanders turned to online shopping as concerns over the spread of Covid-19 increased.

According to BNZ's report on online shopping, the impact of the coronavirus was already visible in March.

While total online sales were only up 6 per cent on March last year, spending online on groceries and liquor spiked 42 per cent.

Spending on pharmacy and cosmetic items increased 10 per cent while there was a 19 per cent fall in clothing and footwear shopping.

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Online grocery shopping was particularly popular as the country headed into level four.

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New Zealand went into the level four lockdown on March 25.

Under level four, online stores were limited to selling essential items only.

This has changed under level three, with more retailers able to sell online.

Spending at domestic online retailers was also up 24 per cent on March last year, boosted by the higher spending on groceries and liquor, the report said.

Spending at international sites was down 18 per cent on the previous March, however this can't be blamed solely on the coronavirus.

Changes to the rules around the goods and services tax (GST) meant spending on international sites was already 12 per cent down.

Falls were evident in most categories, but spending in the entertainment, liquor and grocery categories at offshore sites was higher than in March last year, the report found.

The authors of the report said the spending figures were influenced by consumer stockpiling.

Online shopping in New Zealand has traditionally lagged behind other countries.

Annual online spending across the retail categories is around $4.8 billion, excluding GST.

This is equivalent to 8 per cent of total retail sales nationwide. according to BNZ figures.

Research by Nielsen showed that Kiwi consumers are very good at going online to check prices and read reviews, but when it came time to buy, the majority preferred to go out and physically get things.

Also influencing online sales figures was local availability.

Around 25 per cent of retailers in New Zealand didn't have the capacity to sell products online ahead of the coronavirus outbreak, according to figures produced by NZ Retail.