New Zealanders are still spending Dr Bollard

Media release

Newmarket Business Association

Sunday, 1 February 2009

New Zealanders are still spending Dr Bollard as figures will soon show

Reserve Bank Governor Alan Bollard didn’t need to give New Zealanders any encouragement last week to keep spending because they are doing just that. Kiwis are proving to be a lot more resilient than consumers from other countries, claims the head of Auckland’s leading retail precinct.

This month Statistics New Zealand will release the much anticipated official December retail spending figures.

“We're anticipating December’s retail figures across New Zealand to be similar to the previous December. Let’s not forget Paymark reported a record breaking Christmas Eve and Boxing Day. What’s more official retail statistics released last month showed that November held its own, with Auckland and other areas actually up, surprising some economists who were expecting a marked decline,” says Cameron Brewer, head of the Newmarket Business Association.

"We have yet to see any overly dramatic drops in retail spending unlike the US and UK. New Zealand is holding up relatively well. In comparison the United States had its worst holiday season in retail for nearly 40 years and a shocking January.

“The lengthy sales around the country have held up transaction volumes and pedestrian counts. We’ve had a busy weekend trading in Newmarket. However while sales keep the cashflow moving, they do dig into retailers gross profit margins so that is a concern.

“With out doubt it is going to be a tough year. However if the last few months are anything to go by New Zealand retailers won’t be hit as hard as their overseas counterparts. Our retailers are in a much stronger position than many others around the world. Dr Bollard can be assured that Kiwis’ obsession with shopping will continue albeit the dollars spent won’t be as big,” says Cameron Brewer.

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