Not having money for a lot of presents didn't have to mean a bare-bones Christmas, Sandy Fage said. Photo / Getty Images
Not having money for a lot of presents didn't have to mean a bare-bones Christmas, Sandy Fage said. Photo / Getty Images
As the cost of living soars and predictions of a recession are ever-present, Whanganui residents seem to be spending less leading up to Christmas.
According to payment network Worldline New Zealand statistics, during the Saturday of Black Friday sales Whanganui shoppers spent more than half a million dollars, 12 percent less than the year previous.
The drop in Black Friday sales could be due to the lifted official cash rate (OCR), Whanganui Budget Advisory Service (WBAS) manager Sandy Fage said.
“[The] Reserve Bank wants us to spend less, and it looks like people did over Black Friday,” Fage said.
The Reserve Bank lifted the OCR by 75 basis points last week, taking it to 4.25 per cent, its highest level since 2008.
“You can get creative and choose a tree outside as a Christmas tree.”
Fage said some struggled with the stigma of not pulling their weight, or families who had always done presents.
“So there can be those pressures to spend money and it can be awkward for some people.”
But sometimes when one person speaks up, everyone else says they are really glad they said that.
It’s starting that conversation, but it’s not easy.
Fage said Christmas was a very complex time of year for most.
She said It also coincides with massive school holidays.
“Some kids are reliant on school lunches, now they’ve lost that and what are they meant to do?”
Avoid getting overwhelmed by it all this year, Fage said.
“The biggest thing is to be kind, patient, and try to not get sucked into the whirlpool of consumerism.”
Kaputī owner Whitney Nicholls-Potts said it was hard to compete with Black Friday sales as a store with handmade goods. Photo / Bevan Conley
Kaputī owner Whitney Nicholls-Potts said so far it had been the quietest Christmas she’s ever had, for both in-store purchases and online.
“Meanwhile, arguably I’ve had the most engagement with customers ever and it’s the most known my business has been.”
Nicholls-Potts opened her tea shop in Whanganui in September and had a store in Auckland before moving back to Whanganui earlier this year.
“I definitely feel attitudes are changing and people aren’t spending as much, including myself I suppose.”
She said Black Friday sales were a hard time for any small business owner.
“I can’t compete with that and put extreme discounts on my products, they’re all handmade.”
Many of her peers with small businesses said the same thing.
“The cost of living is so much that of course, people want to make the most of deals, so it is a funny time.
“It feels like all my money is going towards the supermarket and the petrol station at the moment, but my whole mantra is just to buy less and buy better.”
She said when people bought from small local businesses, the money directly supported the owners and community.
“The money I get is spent directly on this local community.”
Paige’s Book Gallery literary consultant Rochelle Handley said they had been extremely busy.
“I think even though a book is a real treat during the year because they’re not an everyday item that you buy, as a present they are affordable.
“They can be special, educational, and still really personal.”
She said the business stemmed from the ‘shop local’ movement over covid.
“People really have listened to that and are being really supportive.”
Whanganui & Partners chief executive Hannah Middleton said summer events would bring many tourists which would be great for local businesses. Photo / Bevan Conley
Whanganui & Partners chief executive Hannah Middleton said their data showed spending over the last month was up 2.9 per cent from the same month in 2021.
“However, we have seen a slight slow in weekly consumer spending over the past few weeks,” Middleton said.
She said it had gone down 1 per cent over the last two weeks, even as Christmas draws nearer.
“While spending was down slightly last week, it was up 20.3 per cent in the area of ‘clothing, footwear and department stores’ and up 3.4 per cent for ‘hospitality and accommodation’.
“We expect we will continue to see positive consumer spending for these categories as people get out Christmas shopping and socialising, and as visitors come to our region.”
She said Whanganui & Partners also saw income growth in Whanganui.
“Though we are mindful not all workers will have benefitted from pay rises while the cost of living has risen.”
Middleton said having less discretionary income affected people’s spending habits.
“We are supporting a lot of big events coming up in Whanganui over the next few months and will be expecting thousands of visitors for Cemetery Circuit, Vintage Weekend, Colgate Games, Masters Games and Artists Open Studios.
“These events provide a great boost to our local economy and are of huge benefit to our accommodation, hospitality and retail sectors.”
Middleton encouraged local businesses to make the most of the opportunities for a boost in trade.
“And we know locals also look forward to getting out and enjoying summer events.”
