Christchurch Retailers’ Return to Business Begins

In the five days since the magnitude 6.3 earthquake hit Christchurch, retailers in the region that are able to trade have slowly begun the return to business. Latest figures from Paymark show that the number of Christchurch retailers active on the Paymark network has grown from 770 on Wednesday 23rd February to 1534 on Monday 28th February. Yesterday, spending was still well below year-ago levels (-31 per cent) but this is an improvement on the average trading deficit across the five days prior of 46 per cent.

Though the growing number of retailers transacting is encouraging, the effects of the quake on the economy are immense.

During the five days following the quake (Wednesday – Sunday) spending in the area dropped by almost half, with 536,563 fewer EFTPOS transactions representing a total loss of sales on the Paymark network of around $24 million, or nearly $5 million per day.

On Wednesday the 23rd February, there were 57 per cent fewer transactions through the Paymark network than the same day in 2010, and 52 per cent less money spent.

The largest decline in terms of value came on Friday, traditionally the busiest shopping day of the week, with a $6.2 million decline in sales.

Paymark CEO, Simon Tong, says that these figures provide a snapshot of the region’s trading one week on, but the full extent of damage to the economy won’t be known for much longer.

“Like the rest of the country, our primary focus is on helping those affected by the quake in whatever way we can. Businesses were hit hard last year, but this year they’ve been hit much harder. We’re looking at sales drops of around $5 million per day.

“We are working with our partners and the banks to assist retailers and the Christchurch business sector in every possible way, primarily through the provision of mobile terminals, financial support packages, and we’ll be offering more over the coming weeks as we determine the best ways to help,” says Mr Tong.

To view a full list of retailers in the Christchurch region able to process EFTPOS transactions on the Paymark network please visit www.paymark.co.nz

ENDS

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