Core retail spending in Hawke's Bay up 6 per cent in 2020

Napier City Business general manager Pip Thompson said Napier was busy both before and after Christmas with Boxing Day sales doing better than some businesses expected. Photo / File

Core retail spending in Hawke's Bay was up 6 per cent in 2020, despite the limitations of lockdown and no international tourists.

In 2020 the region saw $1.4 billion worth of transactions flow through electronic transaction company Paymark's machines, up from $1.3b on the year prior.

Local business associations have put the increase down to the level of domestic tourism Hawke's Bay experienced in 2020.

Nationwide, core retail spending through Paymark was $42.6b, an increase of just 0.1 per cent.

Napier City Business general manager Pip Thompson said the increase hadn't surprised her as domestic tourism to Napier has been booming, but not all businesses would have experienced an increase.

Without international travel and some people still wanting to spend, Napier has become a desirable staycation destination for New Zealanders, with local businesses benefiting.

Hastings Business Association general manager Anita Alder says there have been many more people from out of the district holidaying in the Bay, making Hastings "buzz" through the Christmas period.

Pre-Christmas was "really busy" but so was the period after Christmas, with some businesses doing better than they thought they would at this time, she said.

"This has been spearheaded by the amazing new additions to the CBD in 2020', such as Sazio Pasta Bar, Hastings Distillers, Blackbird Goods, Brave Brewery moving to Tribune and many more.

"Hastings is the place to watch and visit in 2021, as developments continue to drive forward, Hastings District Council's ongoing investment into the revitalisation of the CBD and business owners continuing to offer amazing services and products."

At a national level, there were mixed experiences for merchants.

Spending at stores selling food and liquor remained strong throughout the year, with an 11.5 per cent growth rate for the 12 months.

Spending at hospitality merchants was down 4.5 per cent.

The hospitality sector can be further split into accommodation providers, some of which also serve food and liquor, and the larger food and beverage services sector, which includes cafes, bars, and takeaways.

The food and beverage services subset experienced a 12.1 per cent decline in spending for the year but were again posting annual spending growth of 2.7 per cent by the December quarter.

Payments through Paymark for accommodation merchants was down 30 per cent for the year and was still running at that level in the December quarter.

Merchants who sell day-to-day goods such as clothes, technology and cosmetics, to name a few, recorded a decline in spending of 3.2 per cent for the year but growth had also resumed in the December quarter, in this case to 6.7 per cent.