Boxing Day becoming more significant

Boxing Day becoming more significant

Thursday 27 December, 2018

Spending through Paymark at non-fuel merchants on Boxing Day was up strongly this year, rising by 11.2% on Boxing Day 2017. The $139.5 million spent was made up of $64.1 million on traditional debit cards and the remainder on credit cards or scheme contactless debit cards. Combined there were 2.5 million transactions.

The underlying annual growth rate was strongest in Wanganui (+24.2%) and Gisborne (+21.4%) and lowest in Nelson 9+7.2%) and Auckland/Northland (+8.8%).

Boxing Day is of growing significance to core retailers. Spending within the Core Retail sector excluding Food and liquor merchants and excluding Hospitality merchants totalled $72.8 million. This was the fourth busiest day of the year for this grouping, surpassed only in the Thursday to Saturday before Christmas and exceeding the $69.7m on Black Friday.

Within this group, there was strong annual spending growth amongst Clothing shops (+7.7%), Home decorating stores (+50.5%), Sporting equipment stores (+19.9%), Watch and jewellery shops (+21.0%), Chemists (+33.8%) and Furniture stores (+8.4%).

Noticeable this year, we also spent more beyond these core retailers, suggesting Boxing Day is becoming more than simply a bargain hunting spree. Spending through Paymark at Food and liquor shops was up 19.0% on Boxing Day last year, albeit at a level of spending still well below pre-Christmas. Likewise spending at Fast food outlets was up 23.3% and Restaurants and cafes was up 17.1%. Spending at Beauty and hairdressers was up 35.5%.

And probably of no surprise, spending at Recyling/refuse stations was up 46.2%.

However, Boxing Day remains a day of rest for many people as well. The $139.5 million non-fuel spend through Paymark was only 90% of the average spend on a Wednesday in November, indicating the large number of non-retail merchants who were either closed or experiencing lower levels of activity.

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