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The All Blacks and consumer spending

AllblacksThe fans came and went but did they spend more money? The spending effect of the All Blacks-Wales tests was mixed in the three regions that hosted a test, according to payment provider, Paymark eftpos.

In Auckland/Northland, Paymark’s data showed an increase in spending amongst those merchants sectors typically associated with major events – including, accommodation and hospitality providers – but there was also lower spending amongst competing merchants – for example, movies theatres and art galleries. On balance, there was little net discernible effect of the 1st test on overall spending amongst these merchants.

In Wellington, a similar partial offset occurred between the event-sensitive merchants, but overall the net spending effect was around an extra $0.9 million, a spending lift of 3.1 per cent for Wellington.

A similar effect occurred in Otago, with the net spending increase of around $1.2 million, which translates into a larger percentage increase of 6.7 per cent.

Table 1. Change in underlying spending* through Paymark merchants on Fri-Sun of All Black test, relative to annual growth over 21 days ending 26 June 2016


* Underlying spending is measured by removing from total transactions those due to large merchants known to have partially or fully entered or exited from the Paymark merchants’ network in the last 12 months.

Annual spending growth at Auckland/Northland liquor outlets was 0-10 per cent above the 21-day trend growth rate on the Friday, Saturday and Sunday of the 1st test. This sector in Otago during the 3rd test was 0-10 per cent below trend on the Friday and Sunday but up over 20 per cent on the Saturday of the test.

The following table illustrates some of the spending responses on the days around the test for sectors typically sensitive to events. Annual growth for the sector on each day was compared with the average annual growth over the 21 days ending 26 June. Growth for any one day was then classified as above or below the 21 day trend.

Paymark said it is reporting on the spending patterns observed for selected merchant categories on these dates and is not in a position to know the reason for any spending change. In some cases, changes in spending may be coincidental rather than due to the test in town. For example, the similar spending patterns amongst “adult entertainment” and “florists” merchants over these weekends may just be a chance event.

Key to table:

— >20 per cent below trend 21-day annual growth trend

— 10-20 per cent below trend

– 0-10 per cent below trend

+ 0-10 per cent above trend

++ 10-20 per cent above trend

+++ >20 per cent above trend


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