The jury is still out over how successful the key Christmas/New Year period was for New Zealand's retailers, with mixed messages emerging from two consumer spending reports released today.
Eftpos firm Paymark today said holiday period retail sales were strong despite poor weather. But the BNZ said Christmas spending was
"not really that strong".
Paymark, which says its network accounts for 80 per cent of New Zealand's electronic transactions, said consumers spent $3.2 billion in December, up 9.66 per cent on the same month last year.
Paymark also said consumers spent over $170m on Christmas Eve alone and more than $190m in the Boxing Day sales period from December 26 to December 28 -- up 4.88 per cent on the same period last year. The company said spending continued through into New Year sales with $109 million spent on January 1 and 2.
"People seem to be planning more and more to take advantage of the annual post-Christmas and New Year sales," Paymark spokesman Darryl Roots said in a statement.
"While the inclement weather may have impacted on the retail sector, our statistics show that December was still a very successful time on the whole."
However the BNZ's monthly report based on its eftpos transactions found that in spite of high consumer confidence and the tight labour market, there was evidence of a slowing in retail spending growth in November and December.
The BNZ said December spending by its debit and credit card holders rose by 26.1 per cent from November.
"On average since 2001, December spending has risen 27.5 per cent from November.
"This year's result is slightly weaker than normal and follows November's below average growth of 2.2 per cent versus 3 per cent average."
BNZ chief economist Tony Alexander estimated Statistics New Zealand's seasonally adjusted December retail sales figures would show a 0.5 per cent decline from the previous month.
Listed retailers suffered mixed fortunes in the lead-up to Christmas with Briscoe Group and Postie Plus in December issuing profit warnings. Others, such as Pumpkin Patch and Michael Hill, appeared to be doing better.
Meanwhile, Australia's latest Cashcard Retail Activity Index recently found consumers spent a total of A$21.1 ($23.30) billion in December, an increase of 25.5 per cent from November in raw terms.
It was a 10 per cent improvement in spending levels compared to December 2003.
- NZPA
