Online sales rise but many still prefer shops

Hawke's Bay residents are spending more online - but retailers say instore shopping continues to be a strong preference for many.

The BNZ Marketview report for December showed a small increase in online shopping from December 2013 by Hawke's Bay residents. Spending on domestic websites was down 7.2 per cent, while spending on overseas sites was up 19 per cent.

Beattie & Forbes Booksellers owner Megan Landon said people always chased the best price but they also appreciated the perks of shopping instore.

"People generally go online if it means they can get a cheaper deal," she said. "Books are automatically 15 per cent cheaper because they don't have to pay GST.

"But people still like to come in and have a browse and have that one-on-one connection with a retailer, where they can get advice about what would make a good birthday present and what to read after a book they have really enjoyed. Shopping is recreation for a lot of people."

Beattie & Forbes had sold books all over in the nine years it had had an online presence, including to Finland, Australia and rural parts of New Zealand, she said.

Ms Landon expected instore support to remain strong in the next few years, in line with a resurgence in independent bookstores overseas. "Hawke's Bay people are generally pretty supportive of local stores," she said.

Marketview managing director Stephen Bridle said it was interesting to see New Zealanders living outside of metro areas embracing online spending on overseas sites.

"The growth in e-commerce internationally has started putting 5th Ave and Oxford St into the living rooms and kitchens of provincial New Zealand households, and they seem to love it," he said.

Nationally, online spending was up 12 per cent from December 2013.

At domestic merchants, online spending increased 7 per cent yearon-year. BNZ institutional research director Gary Baker said it was a strong result for December, as online spending had been growing at only 3-4 per cent per annum for most of the year .

Kiwis also spent 19 per cent more on overseas sites than the year prior, despite the New Zealand dollar being down a further 6 per cent against the US dollar than in December 2013.

Food and entertainment goods were the standout categories for online spending growth, with increases of more than 20 per cent from December 2013, the report found. On domestic sites, spending on "newspapers and books" and "computers and peripherals" were also strong - up 18 per cent and 21 per cent respectively, while spending on clothing increased by 19 per cent on overseas sites.

Overall, it seemed the proportion of Christmas presents bought online increased another notch in 2014, Mr Baker said.

"This year we have seen a shift in the timing of online purchases, with an increase in the percentage of domestic online transactions completed in the three days just prior to Christmas," he said.

"A few delayed transactions aside, it seems to us this is an indication of consumers' growing confidence in shopping online, and their willingness to wait for those best last-minute deals.

"It also points to the efficiency of New Zealand e-tailers' supply chains. If consumers know they will get reliable service, it can only help to increase online purchase levels."

Spending at physical stores was up by about 4 per cent on December 2013.