KEY POINTS:
Noel Leeming Group chief executive Andrew Dutkiewicz says the company is selling flat-screen TVs, video games and computers like never before.
Consumers spent up a storm in the March quarter, especially on appliances, according to yesterday's Statistics New Zealand data.
Spending in the month of March was particularly strong.
Dutkiewicz said strong demand for laptops, the release of Microsoft's latest operating system Vista, and cheaper flat-panel televisions drove the sales.
"We're pleased with our performance for the March quarter. It was better than the December quarter," he said.
Once-pricey flat-panel televisions were becoming cheaper. "I suspect that's an accelerating trend as we reach some sort of magical price point and people decide they can afford to buy them," said Dutkiewicz.
You could buy a "reasonably sized" flat-screen television for $2500 now, whereas last year "you wouldn't have even been thinking about that".
Noel Leeming has a promotion-driven business, and sends out advertising mailers every second week.
But Dutkiewicz said the business "didn't do anything over and above" what it did in March last year.
"As always, people come out the back end of Christmas a little bit tighter and interest-rate rises won't have helped. I suspect, though, credit is a lot easier to come by from the retailers direct and that would have had an impact on sales."
Clothing retailers also improved sales in the March quarter.
David Houldsworth, managing director of Hannahs and Number 1 Shoes stores owner Hellaby Holdings, said the March quarter was a distinct improvement, but the December quarter had been "particularly disappointing" due to bad weather and the late start to summer.
Houldsworth said there seemed to be a greater inclination among consumers to spend.
"What's driving it? [It's the opposite effect] of what the Reserve Bank is trying to achieve - interest rates are pushing up the New Zealand dollar which is in turn reducing the price of consumer goods, so people are going out and spending more money."
Restaurateurs had mixed responses to the news that spending in restaurants was up.
The seasonally adjusted monthly figures showed a steady increase in sales from restaurants and cafes: $791 million in March 2005, $898 million in March last year and $950 million in March this year.
Vivace restaurant on Auckland's High St had its best year in 15 years, owner Mandy Lusk said. Sales figures for March were 15 per cent up on March last year.
Restaurateur Judith Tabron, owner of Soul Bar on Auckland's viaduct, took a bleak view of the figures, despite a 40 per cent increase in business functions booked at her restaurant in March.
"We might be increasing the turnover but the key indicators are the same and money's still going out the door.
"For instance, last year oil prices went up so everyone slapped delivery charges on to their products."
