Electronic payment stats show winter retail dip

File photo

Retailers hoping for a late winter sales lift have been dealt a blow, with Statistics NZ saying this morning that the value of electronic card transactions fell 0.5 per cent in August.

The value of transactions fell in five industry groups, with fuel retailing recording the only significant rise.

Core retail, which excludes the motor vehicle-related industries, fell 1 per cent in August, following increases in both June and July.

There were falls in all core industry groups this month, with durables, down 2.4 per cent, showing the largest fall.

When the two vehicle-related industries are included, the value of transactions in retail decreased 0.7 per cent. Fuel retailing was up 1.6 per cent in August after falls in each of the preceding three months.

These falls came after eight consecutive monthly rises.

When the two industries that fall outside retail (non-retail and services) are included, the total value of transactions decreased 0.5 per cent.

Trends for the value of transactions in the total and retail series have been increasing since January 2009, but have flattened in recent months. The core retail trend has generally been increasing since October 2002, but has eased gradually since April 2011.

Changes in the value of transactions -compared with July 2011 - were as follows:

- Total electronic card transactions were down (0.5 per cent).

- Transactions in the retail industries were down (0.7 per cent).

- Transactions in the core retail industries were down (1.0 per cent).

- The largest decrease was in the durables industry; the largest increase was in fuel retailing.

Latest figures from Paymark, which processes electronic transactions showed that while the value of transactions during July and August rose 3.7 per cent against last year - growth was below that recorded for the first half of 2011.

Paymark's head of sales and marketing Paul Whiston said the slowdown had been particularly noticeable during the last two months with soft trading conditions across most sectors.

"I think it would be fair to say that few businesses have escaped the mixed spending patterns."

The anticipated spending boost by tourists in New Zealand for the Rugby World Cup, would be welcomed by retailers, he said.

Department stores (down 3.6 per cent year-on-year) and furniture stores (down 5.5 per cent year-on-year) were among the hardest hit by the retail spending slowdown, while spending at food and liquor stores rose 7.8 per cent during the same period.

- HERALD ONLINE