Spending focus shifts to fun in the weeks before Christmas

Monday, 14 December 2020

After the record-breaking spending of the last four months, shoppers are slipping back into traditional Christmas habits.

Spending for the week ending December 8 picked up for food, liquor and hospitality merchants but was down for a wide range of retailers such as furniture, clothing and appliances, according to eftpos provider Paymark.

A Paymark spokesman said this was typical for the Christmas period.

While the pattern of spending was the same as previous years, the actual dollar amount spent was higher this year, according to Paymark.

Shoppers have continued to spend in the lead-up to Christmas, though in the last few weeks the focus has been on food, liquor and hospitality. (file photo)

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Shoppers spent $960m in the week ending December 8, 3.6 per cent higher than the same time last year.

Spending across the board was expected to pick up further in the next two weeks, building to a peak near Christmas Day, the spokesman said.

With Christmas Day falling on a Friday, the peak spending day was expected to be either the Wednesday or Thursday immediately before Christmas Day, according to Paymark.

Last year the peak spending day was on the Friday ahead of Christmas Day on Wednesday.

The Restaurant Association's chief executive Marisa Bidois says the recovery in the restaurant industry has been a mixed bag.

Core retail spending had increased nationwide, with the exceptions of Marlborough, which was down 0.2 per cent on last year, Otago was down 9.3 per cent and Southland down 3.6 per cent.

Wairarapa saw the biggest jump, with retail spending increasing 11.8 per cent on the same week last year.

Restaurant Association chief executive Marisa Bidois said she was pleased that there had been an increase in spending with hospitality businesses.

First Retail Group managing director Chris Wilkinson says consumers are looking for experiences in the lead-up to Christmas.

The industry’s recovery had been a mixed bag since the end of lockdown, she said.

A recent report on the hospitality industry showed a national dip of 3 per cent for the year to the end of September.

However, this was spread unevenly, Bidois said.

For example, the Auckland region was down 14 per cent while Northland was up 17 per cent.

A survey in early December showed that many restaurants did not have the same number of advance bookings as in previous years, Bidois said.

“There was some concern leading up to the Christmas period but it is great to see that some of the messages we have been putting out to the public, to support your local, keep dining out and hospitality is a safe place to be, have been working a little bit.”

First Retail Group managing director Chris Wilkinson said shoppers were looking to celebrate with friends and family.

The businesses that were doing particularly well were those that were offering an experience, Wilkinson said.

“If you have a look at Wellington’s Love Local pop-up store, all the businesses there, people can try and test the products and meet the makers,” he said.

“It's those sorts of things that are helping businesses stand apart from others that are doing the same old thing.”

This year, consumers were looking for meaningful products with strong associations, he said.