Matariki Long Weekend Shines Some Light For Retailers At The End Of A Gloomy June

AUCKLAND, 3 July 2024 – Although consumer spending is typically lowest in June, a drop in spending compared to the same month last year made June 2024 an especially quiet month for retail merchants, although the Matariki long weekend provided some light at the end.

Data released by Worldline NZ today shows consumer spending through Core Retail merchants (excluding Hospitality) in its payments network reached $2.79B in June 2024, which is down -2.3% from June 2023.

Worldline NZ’s Chief Sales Officer, Bruce Proffit, acknowledges the combination of winter and the typical spending drop is making for a gloomy picture for retailers at present.

“June is typically the slowest month of the year but the first two weeks of June this year were also noticeably slower than last year. That made for quiet trading,” says Proffit.

“However, there was at least some pick-up on June last year in the last few days of the month, although the level remain of activity remains low overall.”

Proffit notes the $404.3m spent through Core Retail merchants (excluding Hospitality) in Worldline NZ’s payments network over the last four days of the month, which included the Matariki holiday long weekend, was a modest +0.5% above year-ago levels.

“The effect of the long Matariki weekend on consumer spending varied by store type and region. Many merchants experienced a boost on Thursday, but not all – clothing stores were a noticeable exception,” he says.

“Regional spending was also highly variable. Large annual percentage gains in non-Hospitality sector spending were experienced in Whanganui, Wairarapa and Waikato, while the West Coast had a moderate increase. A key factor for these four regions was likely more visitors to the region, judging by the higher spending at Hospitality merchants there.”

Proffit also notes the total spending at Hospitality merchants in Worldline NZ’s network over those final four days in June was $140m, down -1.1% on the same four days last year, which were not a holiday weekend.

“Other regions including Bay of Plenty and Nelson saw Hospitality spending rise, but non-Hospitality spending fall – and conversely, both Auckland/Northland and Wellington, the traditional source of visitors to the resort regions, saw Hospitality spending fall while non-Hospitality spending was up. Spending in Canterbury was lower for both sectors over the long weekend,” he says.

“All in all, the month had a weak start, but thanks to Matariki there were hints of improvement towards the end.”

For the month in total, regional annual growth for Core Retail merchants (excluding Hospitality) was highest – and positive – in Waikato (+0.8%) and Whanganui (+0.1%). The annual spending rate decline was largest in Southland (-9.3%), South Canterbury (-5.9%) and Bay of Plenty (-5.8%).

Figure 1: All Cards NZ underlying* spending through Worldline during 4 days 27-30 June 2024 versus 29-Jun to 2-Jul 2023 for core retail merchants (* Underlying excludes large clients moving to or from Worldline)

Figure 2: All Cards NZ underlying* spending through Worldline in June 2024 for core retail excluding hospitality merchants (* Underlying excludes large clients moving to or from Worldline)

Note: These figures reflect general market trends and should not be taken as a proxy for Worldline‘s market share or company earnings. The figures primarily reflect transactions undertaken within stores but also include some ecommerce transactions. The figures exclude transactions through Worldline undertaken by merchants outside the Core Retail sector (as defined by Statistics NZ).

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