Bay leads nation in spending

Davis Stanway.

The Bay led the nation in spending growth last month with almost $271 million spent - a 10.2 per cent increase on last year.

The volume of transactions in the Bay was also the highest nationwide last month with 5.51 million electronic transactions - a 10.4 increase on May 2013.

Sally Cooke, Mainstreet Tauranga spokeswoman, said the figures were "incredibly encouraging".

"Hopefully it shows increased confidence in the economy on a local front which hopefully translates into increased revenue for our Mainstreet retailers."

Ms Cooke said contributing factors for the growth could be the warmer weather and Mother's Day spending, but did not think the rise could be fully attributable to either.

"Are we starting to see a flow-on effect from the economy starting to lift?

"If that's the case, it would be great."

Paymark's national figures showed the hospitality industry had seen a 14 per cent increase in spending. Regional figures were not available.

David Stanway, general manager of Brew Craft Beer Pub, said he was sure the fantastic weather had helped retailers along The Strand last month as much of the trade came from foot traffic.

He said the pub had been implementing a range of ideas to raise its profile such as quiz nights.

"From our perspective, we're a craft beer bar so we're riding the wave of craft beer popularity which gives us a point of difference. Overall we try and poke our heads out and be different than everyone else."

Other growth sectors nationally were department stores, with a 4.6 per cent increase in spending, and clothing stores with a 2.7 per cent increase.

Bayfair Shopping Centre manager Steve Ellingford said the mall had seen a trend of strong sales growth over the past 10 months.

"So far, three-quarters of our retailers have been able to supply sales reports for May, and the results are looking very positive for another month of growth. While it's a little early in the month to predict our sales results for June, we have received positive early feedback from our retailers indicating we are set for another great month."

Mr Ellingford said marketing campaigns over the school holidays and the lead-in to winter proved popular with shoppers and likely contributed to the upward trend in the centre's sales.

Chamber of Commerce chief executive Dave Burnett said he had found there was more confidence in the business community compared to a few years ago. "We've seen some pretty tough times in the Bay and we're over that and that's reflecting back in the spending."

Good weather in May could have contributed to the sales and volume lift as more people were out and about, Mr Burnett said.