World Cup fever turns up television sales

Sales of television sets in June were up by more than 30 per cent on May figures, according to retailer Noel Leeming Group. Photo / Steven McNicholl

Rugby World Cup excitement is helping boost television sales at one of New Zealand's biggest appliance retailers.

John Journee, chief executive of Noel Leeming Group, which also operates Bond and Bond stores, said June television sales usually increased about 10 per cent on May, but this year they were up by more than 30 per cent.

Electronic card transaction figures released by Statistics New Zealand yesterday showed sales of durable items - such as appliances and furniture - rose 2.4 per cent in June, compared with the month before.

Journee said Noel Leeming Group's total revenue for last month was up about 5 per cent on May, while the year-on-year percentage increase was in the "high single digits".

Whiteware sales, while they had improved, were lagging behind other product catagories such as televisions, computers and mobile phones, he said.

Journee said rugby fans were buying themselves bigger televisions in preparation for the World Cup later this year.

"Television sales are strong and probably one of the stronger categories at the moment."

But the tournament was not the only factor driving television purchases. New features, such as internet television and 3D, were helping to boost sales, Journee said, as was the high kiwi dollar, which was driving down the prices of imported goods.

New Zealand Retailers Association chief executive John Alberton said it had been a grim 18 months for the sector, but the latest electronic card transaction figures were positive.

"I think [consumers] are managing better now within their own limits and it's probably time to relax the purse-strings a bit," he said.

Journee said appliance retailing was still very competitive, with shoppers doing a lot of research before they settled on a big purchase.

"[Before the downturn] people went around three appliance retailers before they settled on a major purchase and it's probably close to four to five [different shop] visits these days."

But he did not think there was any reason for consumer spending not to keep increasing - short of an "economic shock", or a collapse in the value of the New Zealand dollar.