Retailers spoken to yesterday told the Otago Daily Times sales appeared to be up on the same time last year, with a noticeable return to spending by shoppers and a preference for bigger-ticket items.
More shoppers also appeared to be leaving their credit cards in their wallets and opting to pay cash instead, the retailers said.
"People are really buying, and buying more than one item as well," Farry's for Men clothing store manager Zeta Jordan said.
The mood was reflected in Paymark figures released yesterday, which showed spending in Otago during December had reached $153 million by December 21 - up 3.2% on the same period last year.
Paymark, which processed 75% of electronic sales in New Zealand, had also recorded more than $3 billion in sales throughout New Zealand so far this month, up 3.8%, with more than 57.7 million transactions.
However, the mood in Dunedin appeared to buck the national trend, with Paymark chief executive Simon Tong saying the national figures showed a "continuing trend of caution among shoppers".
After a strong start to the month, wet weather during the last full weekend before Christmas put a damper on shopping, driving sales down for the weekend by 0.8% compared with the same time last year.
"Retailers are still having a tough time of it," Mr Tong said.
The company had also noticed a trend away from credit cards, with eftpos spending in December up 5.3% and credit up only 2%, he said.
"Kiwis aren't reaching for their credit cards as much any more, preferring to use their own money."
R&R Sport marketing manager Miff Macdiarmid said she had noticed the increase in shopping activity this month, which was an improvement on last year.
"We have definitely seen some of those big-dollar purchases coming through again."
Trade Aid assistant manager Dave Butler-Peck said activity this month had been "great".
The store was now ranked second out of 30 Trade Aid stores nationwide for turnover during December.
"For us, October was terrible... November was exactly where it should be and December has continued as well."
Jonathan's Photo Warehouse manager Jonathan Kemp said trade was up on the same time last year, with customers opting for quality products.
"People have been fairly frugal, and December is here and they are either treating themselves or friends and family."
A Harvey Norman outlet sale in Dunedin last night - offering some electrical goods at cost-price - also proved popular, with about 30 shoppers queuing for the 6pm start.
Nic Robertson (18), of Dunedin, was among those to take advantage, snapping up a 32-inch LCD television for $549 - saving about $300, he said.
