Provinces' retail spending outpaces New Zealand's major centres

Monday 8th March 2010

New Zealanders in the provinces are picking up their retail spending following the recession faster than the main centres, based on electronic card transactions.

Paymark, formerly Electronic Services, which processes over 75% of all electronic transactions in New Zealand on behalf of more than 50 card issuers, said the increased spending evident in smaller centres is not being equally shared across the regions.

The collective increase in spending in Auckland, Wellington and Christchurch averaged 1.8% from February 2009 to February 2010. However, the rest of the country experienced an average 3.4% increase during the same period, the firm said in a statement.

The fastest growing regions in terms of year-on-year spending were Gisborne with 8.6% growth, Otago up 5.6% and Waikato with a 4.6% increase.

“In general terms, the extra spending outside the main population centres can be attributed to growth across two major non-discretionary categories, petrol and food outlets,” said Paymark chief executive Simon Tong. “These spending patterns are also consistent with the increased volume of tourists visiting the country over the summer months, and the decline in kiwis holidaying abroad.”

Early indicators for 2010 are a source of cautious optimism he said, though whether the growth in smaller regions’ spending indicates strong growth for the country as a whole remains to be seen. The number of card transactions for February 2010 across the Paymark network was 6.2% higher than a year ago, while the value of transactions increased 2.3% for the same period.

The gains weren’t shared evenly though. Housing-related sectors such as furniture, hardware and appliances, as well as clothing stores experienced spending declines. A notable exception to tighter discretionary purse-strings was the restaurant and café sector which saw a growth of seven percent.

Paymark said more than 73,000 merchants and 100,000 terminals are currently connected to its network.

Businesswire.co.nz

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