Big jump in spending on hardware goods

With Christmas fast approaching Wanganui consumers are heading to the hardware store in search of the perfect gift.

Figures from Paymark - which processes 75 per cent of the country's electronic transactions - show a slight rise in spending nationwide during November.

Year-on-year spending is up 4.6 per cent, and up 1 per cent from October. Purchases at hardware stores however, are up significantly - with a 10.4 per cent year-on-year increase.

Mitre 10 Mega Wanganui owner Jeff Gilbertson said it was shaping up to be a good Christmas.

"I'm reasonably pleased with the lead-up to Christmas through the November month."

December was going to be the biggest month and Mr Gilbertson said he expected the rush to be continual from now through until February.

"We're not like supermarkets that have that big surge at the end.

"Power tools have been particularly strong this season."

The other big mover was outdoor furniture, "despite the fact that you can't get outside and do much at the moment".

Large, quality barbecues were also a popular gift choice, Mr Gilbertson said.

"All that better quality stuff always goes first. That's no different this year, it's been a very strong year in good quality outdoor furniture and barbecues."

The Paymark figures are evidence the festive season is upon us. Spending at cafes and restaurants is up 9.3 per cent and liquor retailers enjoyed a 10 per cent surge.

Paymark spokesman Paul Whiston said the increase in pre-Christmas spending followed the same pattern of recent years.

"We have seen the usual lift in spending from mid-November and the last seven days of the month were up 10.4 per cent as compared to the last seven days of October.

"While this shows an improvement on recent months, the increase can in part be attributed to November this year having one more Friday than November in 2011."

Despite the buoyant figures, some retailers were still finding it tough, Mr Whiston said.

"Based on historic figures, we expect the real rush is yet to come. Between 2007 and 2011 spending jumped an average of 27 per cent from November to December as Kiwis ramped up their card usage in anticipation of Christmas."

Other sectors to experience a lift above the 4.6 per cent national average included automotive outlets (up 7.9 per cent) and clothing shops (up 6.5 per cent).

This was perhaps fuelled by those looking for the perfect Christmas party outfit, Mr Whiston said.

"It's great to see Kiwis getting into the Christmas spirit and spending across a diverse range of sectors. We hope to see retailers reaping the benefits in the coming weeks."

Waikato enjoyed the highest regional growth in spending between November 2011 and last month (up 6.5 per cent), followed by Canterbury (up 5.7 per cent) which has been leading the charge since June.

NZ Retailers Association chief executive John Albertson said the figures were encouraging.

There was already good feedback from retailers, though this year would not be a "huge bonanza".

"Cautiously optimistic might be the way to put it.

"It's positive, but it's not the sort of stuff you're going to go out and dance naked in the street [over]."