Newmarket hopes for strong Christmas trade

Newmarket Business Association

Wednesday, 2 December 2013

Newmarket hopes for strong Christmas trade

Newmarket Business Association Chief Executive, Ashley Church, is hoping that this year’s Christmas trade will kick off the long-awaited retail boom. He says the strength of Christmas trading will determine whether the retail recovery is already underway – or whether we will need to wait a few more months before it kicks in.

Mr Church says that few credible commentators doubt that a retail recovery is imminent – the only debate is over the timing. He says that strong export growth figures, the value of the kiwi dollar, and increases in the value of homes – particularly in Auckland – are flowing through into consumer confidence and that these are the sorts of indicators which always precede an upturn. He says that there is a strong historic link between increasing house values and retail booms – with such booms usually following house price increases by about 18 months as people begin to feel ‘wealthier’ due to the increase in the value of their home.

Mr Church says that there is an element of ‘chicken and egg’ in what it will take to trigger the upturn but says that strong spending over Christmas will be enough to kick it off. He says he is not suggesting that people be irresponsible with their Christmas spending – but is asking them to reflect on the wider economic benefits of loosening their purse-strings a little.

“We just need people to start spending again and we’re waiting for someone to blink first. It’s as if we know the upturn is upon us – but we all got battered by the Global Financial Crisis and we’re waiting to see what others do to give us the confidence that it’s ok to start spending again”

Mr Church says that once spending starts the effects will be rapid and the results will be sustainable.

“A strong Christmas will quickly flow through into more jobs in the service sector – as well as a knock-on effect throughout the wider economy. There’s no downside to this”

Ends

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