Otago pre-Christmas spending drops

Otago was the only region to experience a decline in early pre-Christmas purchasing, with consumers spending $1 million less than last year, according to the electronic transaction company Paymark eftpos.

For the first two weeks of December, New Zealanders spent $1.76 billion, up 1.7% on the corresponding period last year.

But, over the same period, Otago shoppers spent $88 million, 1.2% less than for a year earlier.

Last year, New Zealanders spent more than $4 billion in the weeks leading up to Christmas.

Paymark spokesman Paul Whiston said this indicated a slow start to festive spending.

The number of transactions for the first two weeks of December nationally grew 6.7%, from 31.5 million to 33.6 million, and by 4% in Otago.

Mr Whiston said that all metropolitan and tourism areas reported flat growth in spending for early December, but an analysis of transactions showed Otago consumers spent 20% less on fuel by value compared to the same time last year.

That compared with a decline of 8% to 10% by value in other regions.

Accommodation and hospitality was another area where activity in Otago fell further than other regions.

In the period under review Mr Whiston said spending on accommodation and hospitality in Otago fell 9% compared with between 4% and 5% elsewhere.

The combined lower spending in the two categories would have been a major reason why pre-Christmas spending in Otago was negative, he said.

Even allowing for lower petrol prices resulting in low spending growth in service stations, Mr Whiston said activity nationally was similar last year to this time last year when retailers also reported weak demand.

A survey of Dunedin retailers by the Otago Daily Times yesterday revealed that Christmas shopping had been patchy, with many store owners still waiting for the Christmas rush.

Mr Whiston said that rush could arrive late due to Christmas Day falling on a Thursday.

"The current economic climate will be impacting, but there remains the likelihood that consumers will again hit the shops late this year as they did in 2003 when Christmas Day last fell on a Thursday.

Marlborough (6.3%), South Canterbury (6.3%) and Gisborne (5%) reported the fastest growth compared with last year, while Palmerston North (0.4%) and Wanganui (0.6%) had the smallest spending increases.

 

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