“Nesting” Kiwis boost spend on furniture in January

Furniture shopping
Spending on furniture and homewares rose in September.

Sales in furniture, electronics and hardware remained above average during January, according to Stats NZ.

The statistics bureau said electronic card payments in the industry were up 17 per cent, or $104 million, compared to Jan 2020, and was the key driver in the sales growth for the wider durables group.

“Following the Covid-19 national lockdown in 2020, spending on furniture, electrical, and hardware has been higher than in previous years,” business insights manager Sue Chapman said.

“This may reflect people nesting at home because they are unable to spend on overseas travel.”

The hospitality industry, however, struggled: card spending fell $60 million in January compared to the year prior. This was, according to Chapman, largely due to the lack of international tourism hurting hotels and motels.

Spending had slightly improved in restaurants to $22 million, but was dragged down by the $81 million dip in accommodation.

Across all retail industries, retail sales fell 0.4 per cent to just under $6 billion, Stats NZ said.

“The actual level of card spending showed the typical seasonal peak for the Christmas shopping period in December.” Chapman said.

“However, spending in January was flat after adjusting for seasonal effects.”

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