Weekly retail spend drops

Online shopping, e-commerce, trolleyFor the first week since August, the BNZ Marketview report found that retail spending on BNZ credit and debit cards was down 1.3 per cent when compared with the same week in 2013.

Results for the week ending October 26 also showed that transaction volumes were up 1.1 per cent.

Modest growth has been seen over the past weeks, with spending over the past 30 days up 0.5 per cent compared with the same period last year.

The report said that recent slow periods of spending with national retailers may potentially be related to New Zealander’s spending online, which is steadily increasing.

The BNZ Online Retail Sales Report stated that in September there was 13 per cent more spending at online retailers compared with the same month in 2013.

Spending at international merchants rose 20 per cent, indicating that prices offshore continue to beat local retail offerings, even with the fall of the NZ dollar and the lower exchange rate.

Local appliance retailers had a decrease of 10.9 per cent this week, together with a 5.9 per cent decrease in the September quarter.

The BNZ Marketview report said that this is one area where the online offering is huge, and where it’s hard for local retailers to compete.

In the September quarter, online spending on appliances increased by 21.2 per cent.

Statistics New Zealand reported a 9.8 per cent drop in prices of audio-visual and computing equipment, with demand prompted by consumers who are getting value with dropping prices.

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