Spending up for Boxing Day but December sluggish

Spending was up on Boxing Day this year by 13.1%, a relief for retailers holding out for 2025. Photo / Alex Burton

Kiwis have spent big on Boxing Day sales across the country, although spending leading up to Christmas was down compared to 2023, according to new data.

According to payments firm Worldline NZ, consumer spending processed through all non-food Core Retail merchants (excluding hospitality) on Boxing Day reached $67.7 million, up by 13.1% on Boxing Day 2023.

Spending was the highest in bookshops, clothing stores, hardware stores and sports equipment shops.

Worldline NZ chief sales officer Bruce Proffit said sales had picked back up after a smaller 2023.

“In 2023, we noted that Boxing Day spending fell below the levels seen in 2022 – not surprising following what had been a particularly difficult year with the impacts of Cyclone Gabrielle and other weather events that created a long stretch of lower spending at retailers nationwide,” Proffit said.

Across the country, Whanganui reported the highest annual spending growth on Boxing Day, up by 33.4% compared to 2023.

Marlborough and the West Coast also reported significant growth, up by 30.9% and 29.4% respectively.

As for the main centres, spending grew in Auckland by 9.5%, Wellington by 16.9% and Christchurch by 10.6%.

The average annual sales growth nationwide was up by 11.3%.

Slower December

While sales on Boxing Day were up compared to 2023, the 24 days to Christmas were slower according to Worldline.

“Spending had been up on 2023 early in the month, but was down -2.0% in the last three days immediately before Christmas Day, although it still averaged a high $179 million per day,” Proffit said.

Consumer spending processed through all Core Retail merchants (excluding hospitality) during the first 24 days of December 2024 reached $3.2 billion, down -0.9% on the first 24 days of December 2023.

Proffit believed the decrease was down to two reasons, the average transaction size and volume.

“First, the average transaction size was 1.1% lower this year ($54.79), implying either more discounting and/or consumers buying fewer high-value items,” Proffit added.

“The second factor is the generally modest increase in the volume of transactions. Both factors are consistent with continued pressure on Kiwi household budgets.”

While spending over the first 24 days of December was lower than in 2023, spending was still higher than pre-pandemic levels in 2019.

Tom Raynel is a multimedia business journalist for the Herald covering small business and retail.