Sales on long-lasting goods drop in December 2019

Retail spending fell in four of the six retail industries in December 2019, with the largest fall coming from sales on long-lasting goods, according to the recent Statistics NZ data.

When adjusted for seasonal effects, retail spending saw a 0.8 per cent drop in the December 2019 month, after a strong 2.9 per cent increase in November 2019 when sales were boosted by the Black Friday and Singles’ Day promotions.

The largest fall came from sales of furniture, hardware, appliances, and sports and recreational goods (durables) which dropped 2.5 per cent to $37 million.

“The dip in durables comes on the back of a very strong November month,” retail statistics manager Sue Chapman said.

Fuel industry sales dropped 1.3 per cent to $7.4 million. Sales of clothes and shoes (apparel) were also lower, down $6.1 million (1.9 per cent).

There was a 0.4 per cent increase in spending on food and beverage services and accommodation (hospitality), and sales of groceries and liquor (consumables) were up 0.2 per cent.

Core retail spending (which excludes the vehicle-related industries) fell 0.9 per cent in December 2019 after a 2.8 per cent rise in November.

The total value of electronic card spending, including the two non-retail categories (services and non-retail) fell 0.6 per cent in December 2019. This follows a 0.9 per cent rise in November.

In actual terms, retail spending using electronic cards in December 2019 topped $7 billion for the first time for any month, at $7.2 billion, up $273 million (3.9 per cent) from December 2018.

In recent times, actual total retail card spending in a December month is over $1 billion more than the respective November month.

Chapman said while November could be getting more important for retailers with Singles’ Day and Black Friday sales, December is still the king.

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