Shoppers in South spend up big in December

People enjoy summer weather in Dunedin’s lower Octagon yesterday. Photo by Christine O'Connor.
People enjoy summer weather in Dunedin’s lower Octagon yesterday. Photo by Christine O'Connor.

Ka-ching: Southern shoppers pulled out their plastic more often last month to "spend up a storm''.

Paymark figures yesterday revealed $307.3million was spent in the Paymark network in Otago last month - 8.5% more than in December 2014.

In Southland, $121.8million was spent - up 9%.

Nationally, New Zealanders spent $5.493billion, up 7.8%, or a $397million bigger spend than December 2014.

Otago Chamber of Commerce chief executive Dougal McGowan said the figures were "good news'' for Otago and Southland retailers.

Mr McGowan was on holiday in Te Anau yesterday and the strong spending was continuing.

"People have been spending up a storm. You can't get near a shop or a supermarket without being part of a queue. It's just phenomenal.''

People were avoiding busy summer hot spots, opting for quieter places, such as Dunedin.

"People want to get away from the crowds and they are spending big.''

Retail NZ spokesman Greg Harford said the figures were encouraging.

"December started a bit patchy around the country but spending got a lot stronger and shops got a lot busier as we headed towards Christmas.''

Mr Harford was "surprised'' by the level of increases on December 2014.

Retail NZ had forecast an increase spend of up to 5% and was "pleased'' with the 7.8% national increase.

Paymark spokesman Paul Brislen said factors which could have influenced the figures include the Reserve Bank cutting the official cash rate by 0.25% to 2.5% per annum in early December.

Lower petrol prices to December 18 - 4.8% below the same four weeks in 2014 - were offset by strong accommodation figures, likely to be from increased visitor arrivals to New Zealand, Mr Brislen said.

Of the $307.3million Otago spend, $151.4 million was on credit cards - up 14.2%. Of the $121.8million Southland spend, $48million was on credit cards - up 14%.

New Zealand had an overall increase of 10.2% to $2.535billion.

Dunedin City councillor and Acquisitions gift store chain co-owner Richard Thomson said the sales in his Dunedin gift store were "slightly up'' last month.

His stores in other parts of New Zealand were up ‘‘much more'' last month, while other stores in the chain failed to match the sales figures in December 2014.

Although the spending figures were up, some retail sectors were doing better than others, he said.

As a former board member of the New Zealand buying company, Composite Retail Group, he found the financial performance of different retail sectors peaked at different times.

"Some sectors will be really strong for some periods of time and then other sectors will be strong.''

The Paymark network accounts for more than 75% of New Zealand's eftpos terminals.

shawn.mcavinue@odt.co.nz

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