Retail spending on the rise for Hastings

People lining the streets in Hastings as the city saw an 18.8 per cent increase in retail spend for the first quarter of 2017 when compared to 2016. Photo/ file.

According to figures from Statistics New Zealand retail sales across Hastings had risen a "whopping" amount during the first quarter of 2017.

The latest Retail Trade statistics showed Hastings had enjoyed an 18.8 per cent increase over the same period ending June last year, while Napier saw a 0.3 per cent increase.

These results carried on the upward trend of Hastings leading retail growth, upholding retail sales throughout each quarter since 2015.

Hastings District councillor and economic development and urban affairs committee chairman Damon Harvey said when he went shopping in Hastings on Sunday it was clear how buoyant town was.

"The economy has been doing well so more people are out making purchases. Retailers are always needing to be on their game and they are now seeing the benefits."

Hastings City Business Association general manager Susan McDade said despite the struggles that most of the retail sector had endured in recent years, Hastings retailers seemed to be pulling out all the stops to stay on top.

This rise in sales illustrates the Hastings retail sector is moving in the right direction and that consumers are spending money with more confidence.

Competition from online stores and overseas websites continues to be a concern, but they are not impacting as significantly as previously feared, especially for those businesses with an online presence.

ANZ chief economist Cameron Bagrie said when you throw together booming house prices in the Bay, a couple of sectors doing well and more people in jobs there is a recipe for strong retail numbers.

"Good income growth across the economy lays a platform for solid retail spending numbers going forward."

However Mr Bagrie said the 18.8 per cent looked too high so some "statistical noise" may have been involved but he expected the Bay to be going better than the national average.

Nationally retail spend had risen by 6.7 per cent and Mr Bagrie expected retailing to settle around the 5 per cent growth mark.

Hawke's Bay Chamber of Commerce CEO Wayne Walford felt Napier's smaller percentage increase may be due to the perception of safety and challenges with the homeless.

"Just the other day I was talking to someone who said they now had to drop their daughter right outside the front of the shop as they no longer felt safe so maybe that has something to do with it."

But Mr Walford said it would be interesting to see how things like charged car parking would affect retail spend next quarter for Hastings.

Ms McDade said the results was a truly exciting time for Hastings with plans for improving the environment even further cementing Hastings as the commercial powerhouse of Hawke's Bay.

The Hastings District Council have planned to create a Laneway in the CBD, which would connect pedestrians between off-street parking areas and the shopping precinct.

The Hastings retail environment including the attraction of Bay Plaza and the development of the Albert Square and the East side boutique retail environment compliment the national chain high-street environment of Heretaunga Street West.

The Big box retail giants on St. Aubyn's street and the Park Mega centre are also strong drawcards for shoppers across Hawke's Bay.