Strong start to Christmas spending

Photo / Natalie Slade

Christmas spending is off to a strong start with, up 4.4 per cent on the same time last year.

Paymark's figures for the fortnight between November 29 and December 13 show shoppers spent $2.3 billion in the start of Christmas shopping.

Paymark processed 46.37 million transactions, a 6.8 per cent increase on the same period last year.

Paul Whiston, Paymark head of sales and marketing, said the past 14 days show a strong start to Christmas spending with two big shopping weekends yet to come.

He said the annual growth rate was at 5.7 per cent and he expected the figure to strengthen to between 6 and 8 per cent as Christmas Day approached.

Spending on entertainment and hospitality increased 9.9 per cent on the same time last year.

"This reflects the annual Christmas celebrations but consistent growth in this sector throughout 2014 may also be due to an increase in domestic and international tourism in places such as Nelson and Otago where growth is strong," Mr Whiston said.

The other big growth area was spending on food at supermarkets and takeaways, which increased by 9.1 per cent.

A spokeswoman for Countdown said they were approaching the two busiest weeks of the year.

"Our whole Countdown team is gearing up to make sure that our shelves are stocked, the strawberries are plentiful and that customers can get what they want at some really great prices. There is huge competition in the market so there's some fantastic deals to be had this Christmas."

Julia Bell, spokeswoman for The Warehouse, said Christmas shopping momentum was building.

"This year many have started their Christmas shopping, but most are yet to finish so we expect the next few days to get much busier as we approach the week of Christmas."

Sales of books and DVDs were up 5.1 per cent and were the biggest sellers for online retailer Mighty Ape in the lead-up to Christmas.

Spokesman Dylan Bland said reports consumers were moving to the digital versions of books and DVDs were contradicted when it came to presents.

"There's a very obvious exception to that rule when it comes to gift giving at Christmas. Books are going very strongly for us, up 40 per cent on last year.

"Evidently Kiwis still very much value the tactile -- especially when it comes to giving gifts."

Cookbooks, non-fiction and coffee table books were particularly strong, he said.

Greg Harford, Retail NZ general manager of public affairs, said it was not surprising books were doing well.

Retail NZ had been running a campaign encouraging people to buy from local retailers, online or in person.

Mr Harford said there were more discounts and sales before Christmas than there used to be.

"That points to people not getting out and spending as much, and the highly competitive global marketplace. Consumers have unprecedented choice in where they go. Retailers are keen to offer the best deals possible."

Stores selling building and housing goods showed a 5.3 per cent increase. Spending on clothing, apparel and jewellery was slow, with an increase of 0.1 per cent.

Across the regions, Nelson had the biggest increase in spending (7 per cent),with Otago following on 6.9 per cent.

Auckland/Northland and the Bay of Plenty both had spending increases of 5 per cent in spending.

In Southland, spending dropped 4.8 per cent.

Christmas favourites on Mighty Ape:

* The Great New Zealand Cookbook (cookbook)
* Whiskey Rocks (home & living)
* Guardians of the Galaxy (DVD & Blu-Ray)
* Everyday Delicious by Chelsea Winter (cookbook)
* The Very Hungry Caterpillar (picture book)
* Kitchen canisters from General Eclectic (home & living)

*Total spend Nov 29 - Dec 12: $2.3 billion.
*Total spend last year same period: $2.2 billion.
*Increase of 4.4 per cent
*Total transactions Nov 29 - Dec 12: 43.42 million.
*Total transactions last year same period: 46.37 million
*Increase of 6.8 per cent