Holidaymakers boost Bay of Plenty retail spending to $57.6m this holiday period

Tauranga Crossing CEO Lauren Riley said visits to the retail complex spiked. Photo / NZME

Thanks to the summer weather, holidaymakers made sales go "gangbusters", however, experts say the rise of inflation makes spending appear more impressive than it really is.

Holiday spending in the Bay of Plenty was up by 11 per cent compared to 2020, according to data on electronic transactions from Worldline New Zealand.

In the seven days ending January 4, shoppers in the region spent $57.6 million on retail, an increase of 11 per cent on the same time last year.

Nationally, liquor merchants earned $16m on New Year's Eve, an increase of 13 per cent when compared to 2020.

Not including spending in the hospitality industry, Worldline NZ recorded a countrywide total of $696m in retail earnings between December 29 and January 4.

Papamoa Plaza manager David Hill said during the holiday period "we not just survived but we thrived through it".

Papamoa Plaza manager David Hill is glad to see businesses busy. Photo / NZME

"The retailers were frantic ... We had to call people back from holidays ... people really pulled in and did double shifts and extra shifts."

The clothing stores, Warehouse and Countdown Supermarket were particularly popular, Hill said.

Sales for boogie boards, beach chairs, blow-up pools and summer clothing went "gangbuster", Hill said.

He believed the busyness was due to the "stunning weather and lovely air conditioning inside the centre".

Holidaymakers would go to the beach then wander around the centre to get food and shop before heading back to the beach, said Hill.

"I think we're very lucky position being so close to the beach and in the number one domestic tourist destination in the country."

He said all businesses big or small were busy, "it's across the board - everything from your hair and nails through to your T-shirts and ice cream".

"You work hard all year to do well this time of year ... it's been such a fun environment to be working in this year in particular."

However, Tauranga Chamber of Commerce chairman Matt Cowley said, "Once you take out inflation, the real increase in spending from last year is more modest."

He said the spending increase is "unsurprising as NZ's inflation is running high [5 per cent]. Higher inflation means people are earning more, but things are also costing more to buy."

Cowley said increased spending came mainly from inflation but also Aucklanders who needed a change of scene after their more than 100 days of lockdown. Because they couldn't travel overseas, they flocked to out-of-town coastlines like in the Western Bay.

Cowley said spending was seasonal, "businesses earn profit over the summer months to get them through the quieter winter months".

"It's important for businesses to make hay while the sun shines as they need to replenish cash reserves after last year's Covid-19 interruptions."

Lauren Riley, chief executive of Tauranga Crossing, said, "We experienced a spike in visitation and retail spend over the peak holiday period, particularly during key retail trade such as Boxing Day and New Year's sales.

Tauranga Crossing mall. Photo / NZME

"We expect that in 2022, whatever it may bring, Tauranga Crossing will continue to be a community hub for locals and visitors to support retailers in the local area."

Presentables Whakatāne owner Leonie Moeke said the retail's strong performance was due to a combination of holidaymakers and "superb" weather.

Moeke said customers were half locals and half holidaymakers.

Aucklanders had been "making the most of it", spending their time out of lockdown around the country, Moeke said.

Despite the busy season, Moeke said "I always plan for this time of year."

She was "pretty prepared" for the increase in sales and didn't sell out of anything.

Quentin Mcintosh, Q Records & Collectables. Photo / NZME

Q Records and Collectables owner Quentin Mcintosh said sales were "a perfect storm since December".

Mcintosh estimated 50 per cent of his holiday period customers to be out-of-towners.

He said some stock was "thin on the ground", with Ed Sheeran CDs selling out, and vinyl by Whitney Houston and Adele in short supply.

Mcintosh said "the weather really helped" to bring in customers.

Waihi Beach Home and Hardware owner Alan Kurtovich said the store had been very busy - and he expected to get busier.

"It's been very good, on par with last year. Last year was an extraordinary year and there was a great push for people to spend locally so Christmas was huge."

Kurtovich had seen people from Napier, Wellington and the South Island in his shop over the holiday period.

"There's been a big range of people from all over New Zealand," Kurtovich said.

"The difference this year was we had a lot of young people coming to Waihī because of a concert."