Electronic card spending grew in October by 0.6%. Photo / Natalie Slade
Electronic card spending grew in October by 0.6%. Photo / Natalie Slade
Retail spending grew in October led by a surge in hospitality, new figures show.
According to Stats NZ’s latest electronic card transaction data, out today, spending in the retail industries increased by 0.6% ($39 million) compared with September.
Spending in the core retail industries increased by 0.6% ($35m) in October.
Breaking down the sectors, hospitality reported the largest growth, up $24m (2%).
Durables and apparel reported slight increases, up by 0.1% ($1.2m) and 0.2% ($0.8m) respectively.
This category includes medical and other healthcare, travel and tour arrangements, postal and courier delivery, and other non-retail industries.
Spending in the services category, which includes maintenance, personal care, funerals and other personal services grew by 0.5% ($1.7m).
The total value of card transactions including the two non-core retail categories grew by 0.4% ($32m) since September to $9.3 billion.
Across October, cardholders made 169 million transactions across all industries, with an average value of $55 per transaction.
Marisa Bidois, CEO of the Restaurant Association, welcomed the data and hopes that the industry sees continued growth heading into the summer season.
Hospitality businesses will be particularly happy with the result, especially heading into the festive/summer season when they normally are at their busiest.
Restaurant Association chief executive Marisa Bidois said Kiwis were starting to feel more confident about going out.
“While challenges remain for many operators, this growth signals that efforts to drive people back into our establishments as well as responding to changing diner needs are starting to pay off.”
It was a testament to the resilience and creativity of hospitality businesses across New Zealand, she said.
“The warmer weather and the beginning of the festive season have likely played a role in this uplift, and we’re hopeful this trend will continue as we head into summer.”
Open for business
One area in need of consumer spending is the East Coast, which has been hit hard in recent times.
Cyclone Gabrielle temporarily cut off the community, followed by severe flooding in the Wairoa region.
With the cost-of-living crisis also affecting the community, closures in the forestry industry mean its economy requires outside support.
Gisborne Chamber of Commerce president Ashley Fisher wanted to emphasise one key message to people looking to come to the region this summer.
“We’ve got a whole lot of cool things in front of us as far as events and opportunities for people to have a good time.
“The key message is that Gisborne is open for business and that we are in a state of moving forward rather than focusing on the challenges that we’ve had over the last few years.”
Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.
