"I think that reflects how well they are adapting to new technology, social media and omni-channel retail. The ones that are embracing it are doing really well and the ones that are fighting it seem to really be struggling."
The increase in spending on overseas-based websites was a worry, however, said Ms McDade.
"That's a real concern and I think that will become more of a threat in the future. It's very easy to jump online and order things from overseas ... it's definitely a threat and a concern for us."
Napier City Business Inc. manager Zoe Barnes said overall there was great "energy" in the CBD heading into the busiest time of the year for retailers.
She said a recent survey showed a 1.8 per cent increase in spending on this time last year.
"It can be seen and felt in the main street, there is a lot of people around."
She expected the Napier shopping district to be busier in the weeks leading to December 25, as more tourists flock to the region and Hawke's Bay natives return home for Christmas.
"Supermarkets are already incredibly busy at the moment," she said.
"We have some really forward thinking retailers in Napier and a number of them have already started special Christmas promotions."
She mentioned jeweller Beija Flor and their Christmas wish list for people to win the gifts they desire, and for family and friends to view their santa wish list.
Woman's designer store KILT also has a "clever promotion" she said, utilising the traditional advent calender to promote their latest fashions.
On December 10 the annual Christmas on Tennyson St will see businesses open late with entertainment also provided, while another late night of trading is scheduled to take place on December 16.
Ms Barnes said despite the "face of retail changing" due to online shopping, the experience of street shopping at Christmas will forever have a place.
"Online shopping is growing, but I must say with online shopping I think you may have missed the boat with delivery times for a lot of places already," she said. "People will always enjoy walking the streets around Christmas time with their children and families."
The Bay's online spending results reflected a positive online retail trend nationally. Spending at "brick and mortar" outlets nationally was up by 3.4 per cent compared to the corresponding period a year ago, while online spending was up 7.6 per cent.
Spending on New Zealand-based websites rose by 3.5 per cent but international online spending increased by 19.3 per cent.
Total online spending in October was up 13 per cent on the month last year, with overseas merchants up 28 per cent.
Over a 12-month period until the end of October, Kiwis spent about $2.8 billion (excluding GST) on online purchases.
BNZ institutional-research director Gary Baker said the trends were due to Christmas spending but also to Apple's iPhone release: "One of the categories of spending that is up significantly is electrical and electronic goods ... a big chunk of this is mobile phones.
"There are a few other factors as well, like Christmas-present buying and an increase in competitor marketing, but we think mobile-phone purchases are what is driving the market up."
The next few months should be particularly profitable for online sellers, he said. NZME.
