Older shoppers going online

BUYING POWER: Wairarapa online spending has increased by 11 per cent since 2013.

The over-65 generation of consumers has embraced online shopping, but one local retailer says online needs to sit in tandem with vibrant, physical shops.

The BNZ Marketview online spending report for September shows domestic purchases made up 67.8 per cent of online shopping in the Wairarapa district, a combined increase of 11.2 per cent compared to 2013.

Marketview managing director Stephen Bridle said the report shows online spending has doubled nationwide in five years. The strongest growth is among older consumers on international websites.

Nationwide, a growth in spending at physical stores compared to this time last year has been outstripped by the 9 per cent annual growth in online spending at local merchants and a 20 per cent rise in purchases from offshore retailers.

David Hedley runs Hedleys Booksellers in Masterton, which was established in 1907.

Hedleys has branched out into BooksOnline.co.nz and is a dealer in Genesis high-end music books.

"Books online is going well, it complements what we've got as a bookshop," Mr Hedley said. "We only put online what we've got in stock a lot of places can't deliver, but we've taken a different approach. We deliver nationwide from here. It's complementing our business really well."

Mr Hedley said securing an online presence was slow work, but adapting was important because more and more people are buying online.

A danger that shopping areas will become desolated is associated with that, Mr Hedley said. Attractive shops bring vibrancy, and occasionally competitive prices.

"I would throw into the pot it's misleading to think buying online is always the cheapest. It can be, but not necessarily the case, it's important to realise a lot of shops have in-store specials and are quite competitive. There's this perception online is cheapest. Many times it is, but not always."

Mr Hedley noted the impressive number of travel shops Masterton boasts, and agreed an older generation has got behind internet shopping.

"It's possibly logical that over 65s would adopt because, particularly in the early stage of internet selling, there was concern about internet security. Older, wiser people have taken some time to be comfortable with buying online.

"I don't think online will take over. I think it will sit in tandem with interacting one on one with people, particularly in small communities."

Mr Bridle said Marketview's figures were explained by older shoppers becoming confident they will not get ripped off online, and having more time to spend on the internet.

"They've adopted it later, but I think as more people get comfortable using a credit card online, and not reaching a bogus site, and you can send things back easily now if it doesn't work, the older generation are catching up," Mr Bridle said.

"If you're under 25 typically you're spending on yourself. You're not too worried about spending on a TV and stuff older people think about non-experiential things."

Spending on significant international websites Asos, iTunes and Amazon.com was still exceeded by spending on Kiwi online retailers, Mr Bridle said. He noted that a third of small to medium businesses don't have an online presence, and echoed Bryan French's idea that an online presence is not just about selling. "[Stores] need to have an online presence now - not just for shopping sales, but also for research."

- NZME.