Northland's retailers cautiously optimistic

Northland retailers are still struggling through a tight economic climate, despite a lift in national consumer spending.

Figures released by Paymark, which processes about 75 per cent of New Zealand's electronic card transactions, showed $1.56billion was spent in Northland and Auckland last month, a 7 per cent year-on-year increase.

Northland-specific figures were unavailable.

Whangarei Central Retailers Association spokesman Merv Williams said retailers which had survived had "weathered the storm".

While some businesses were feeling quite positive, he said, clothing retailers were struggling due to the long, hot summer, with consumers yet to come in for their winter wares.

Nationwide, consumer spending jumped 3.9 per cent during the first four months of 2013, with retailers reporting a buoyant trading period.

Year-on-year spending increases were highest at building and hardware stores (up 9.6 per cent) and pharmacies (up 6 per cent).

Hospitality businesses (up 4.8 per cent) also recorded increases, along with food and liquor outlets (up 4.1 per cent).

Paymark spokesman Paul Whiston said it had been a "positive start to the year for retailers in general".

Last month card transactions were 6.2 per cent higher than a year ago, with credit card usage up 10.5 per cent and debit card usage up 4.9 per cent.

Mr Whiston said the rise reflected the gradual recovery following low spending patterns after the 2011 Rugby World Cup.

NZ Retailers Association chief executive John Albertson said there was "a slightly better feeling of optimism out there at the moment" amongst retailers.

"It's a funny market at the moment because you can't say everyone's having a boom time or everyone's having a lousy time, it's a very mixed bag," he said.

Consumer confidence had improved, which drove retail spending more than anything, Mr Albertson said.

Modest gains in the past four months were also reported in big ticket retail stores, such as appliance and sporting equipment (up 2.8 per cent), while accommodation providers also reported a 2.1 per cent spending lift.

The higher national average growth rate was driven in part by the Canterbury rebuild, where spending was up 6.9 per cent year-on-year.

Other regions with spending increases of more than 4 per cent included Otago, Marlborough, Hawkes Bay, and Waikato.

By the numbers

April 2013

• 
  31.4 million transactions in Northland/Auckland, $1.56 billion spent (7 per cent year-on-year increase)
• 
  78.79 million transactions nationwide, $3.91 billion spent (5.9per cent increase)

April 2012

• 
  29.33 million transactions in Northland/Auckland, $1.46billion spent
• 
  74.22 million transactions nationwide, $3.69 billion spent

Source: Paymark