Boxing Day sales rise 11% in Otago

Returning from a fruitful bargain hunt at the Warehouse in South Dunedin yesterday are Rachel and...
Returning from a fruitful bargain hunt at the Warehouse in South Dunedin yesterday are Rachel and Bella (8) Johnston. PHOTO: GERARD O'BRIEN
Otago continued its pre-Christmas retail spending splurge into Boxing Day sales, with a more than 11% increase in underlying sales.

Across the country, New Zealanders' spending increased 11.2% to $139million on Boxing Day, while Otago gained 11.1% to $9.4million, Southland rose 14.6% to $3million and Canterbury was up 11% at $15.3million.

Shoppers' love of Boxing Day sales resulted in transactions around the country rising 16.9% to 2.53million card swipes, according to Paymark, whose electronic transactions across more than 100,000 terminals account for more than 75% of users.

"Boxing Day is of growing significance to core retailers," Paymark said.

Home decorating outlets recorded a massive 50.5% sales gain compared with a year ago.

Otago Chamber of Commerce chief executive Dougal McGowan said there were anecdotal reports Dunedin shoppers were not only heading to the "big box" retail chains, but to retailers "across the board".

"The data shows that Boxing Day is becoming a shopping day of choice," he said when contacted.

Sales were the attraction but it was also the first opportunity to use gift cards, which would not be represented in the spending data, he said.

"When the foot-traffic count is strong in the malls that means dollars going into the tills," he said.

In Paymark's spending figures released on Christmas Eve, which excludes fuel purchases, Otago's pre-Christmas spending resulted in one of the highest gains in the country - up 7.1% at $26.5million, only beaten by Palmerston North's 8.6% gain.

Otago's gain was probably boosted by the 18,000 attending last weekend's Shania Twain concert in Dunedin.

The biggest spenders were in Whanganui, which was up 24.2%, and Gisborne, up 21.4%, while those in Nelson were relatively parsimonious increasing their spending by 7.2%.

Those in Northland and Auckland recorded an 8.8% increase.

Boxing Day spending in the core retail sector, excluding food and liquor merchants and hospitality outlets, totalled $72.8million, making it the fourth-busiest shopping day of the year for this grouping, surpassed only by the Thursday-to-Saturday period before Christmas and exceeding the $69.7million spent on Black Friday.

Sales through chemists were up 33.8%, through watch and jewellery stores they were up 21% and those through sporting equipment stores rose 19.9%.

Sales in clothing stores were up a more sedate 7.7%, while furniture store sales lifted 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," Paymark said.

Spending at food and liquor stores jumped 19%, while fast food outlets' sales rose 23.3% and sales at restaurants and cafes were up 17.1%.

Spending at beauty and hairdresser outlets jumped 35.5%.

Probably no surprise, given all this largesse, spending at recycling and refuse stations was up 46.2% compared with Boxing Day last year.

 - Additional reporting by Businessdesk

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