Brexit pushes NZ shoppers to UK sites

By Aimee Shaw

A number of UK retail sites, including ASOS, reported outages due to surges in online traffic. Photo / Getty Images
A number of UK retail sites, including ASOS, reported outages due to surges in online traffic. Photo / Getty Images

Online retail sales surged 10 per cent in June according to the BNZ's latest study of internet shopping.

Despite growth in online purchases softening over recent months, online purchases from offshore sites remained strong in June, up 9 per cent from a year earlier.

Spending by Kiwis on UK retail sites surged in the week immediately after Britain's decision to leave the European Union, with spending up 47 per cent compared to the same week last year.

This spending on UK sites was spread across all categories, with clothing, cosmetics, computers and tech accessories and outdoor equipment sporting the largest increases and responsible for two-thirds of all increased retail spending.

Movements in the exchange rate were a clear factor in the increased spending.

Prior to the Brexit decision, the exchange rate was 0.49p to $1 New Zealand dollar.

The pound weakened immediatly after the referendum result, with the rate at 0.54p to $1 at the end of June - 24 per cent stronger.

The stronger New Zealand dollar also drove Kiwis to buy greater quantities of goods, also pushing up the spending level.

See BNZ's full report here:

- NZ Herald

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