Paymark confirms steady Christmas for retailers

December 23, 2014

Paymark confirms steady Christmas for retailers

Auckland, 23rd December 2014 - Spending via the Paymark network for the first 22 days of December is up 4.6% on the same period last year with a total of $3.9 billion spent.

Kiwis have spent an extra $170 million this year compared to last year’s $3.7 billion for the same 22 days.

The total number of transactions processed for the period totals 76.2 million compared to last year’s figure of 71.6 million, representing a 6.5% growth.

Paymark’s Head of Customer Relations Mark Spicer says “growth in transaction numbers indicate that Kiwis have been out spending but there could be a number of factors influencing the Christmas spend showing the level of year on year growth seen in previous months. A late start to summer and lower fuel prices may be impacting overall value.”

“We’re seeing consistent growth in some sectors such and hospitality and entertainment as we would expect at this time of year.

Additionally, an increasing number of retailers are starting their Boxing Day sales before Christmas which may be contributing to the increase in the number of transactions we’re processing, but the value may be slightly lower.”

Key statistics for Dec 1st – Dec 22nd:
*See table below for details

• Regions performing well include Nelson, Otago, The Bay of Plenty and Auckland/Northland.
• Spending in slow in Taranaki, Southland and the West Coast and spending in Wellington is weak.
• Spending is strong in the watch and jewellery component of the clothing, apparel and jewellery sector, up 10.4%.
• Spending in the pharmacy, health and beauty sector is up 8.3%.
• Accommodation and hospitality spending has increased by 8.0%.
• Supermarket, other food stores and takeaways are up 7.6%
• Spending is up 5.9% across the books and video sector.
• Spending is up 4.6% across the music and photographic sector.
• Spending across the clothing and footwear sector is still weak.

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History shows that changes in Paymark transactions are not always consistent with retail sales, as released by Statistics NZ, but they do provide a wide measure of household spending. Some Paymark transactions occur through merchants not currently considered part of the retail sector. Some electronic sales are transacted through other switching houses and there remains spending with cash, cheques or other non-electronic means. Paymark spending includes any GST paid to the merchant, and also includes cash withdrawals at the time of purchase.

ENDS

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