KEY POINTS:
Retailers may be feeling the squeeze this Christmas, but it seems Santa will still have plenty to be jolly about.
As shops up and down the country face the prospect of customers spending less on presents, Santas for hire are still generating plenty of business.
Orange Productions director Stuart Robertson said its Entertainment Engineers company was receiving just as many - if not more - calls for Santa impersonators as last year.
The jolly fat men in red suits were a perennial favourite as shopping centre greeters and guests of honour at kids' parties.
Slightly more seductive, female Santas were a hit with the work party crowd, Mr Robertson said.
The company's Santas were likely to attend one or two events during the week, but were often rushed off their sleighs at weekends, when they might attend 20.
The Santa Claus Suit Hire Company has reported strong demand for its costumes, and its three Santa impersonators are all hard at work.
While the queue of kids lining up to sit on Santa's knee may be long as normal, whether the tills will be as busy remains to be seen.
A Research New Zealand survey shows 45 per cent of Kiwis will be spending less this Christmas than they did last year.
Only a fifth of the 500 respondents said the economic situation was not affecting them.
But that would suggest up to 80 per cent of the population are doing it tough this Christmas, said Research NZ director Emanuel Kalafatelis.
"Christmas is traditionally time for a big spend-up and racking up a lot of debt to hopefully be paid off later.
"But if you go by these poll results, it looks like the shops and holiday destinations may be a little quieter this year as people feel the pinch.
"There's a new mood of frugality about this year that's in clear contrast to the last few years of consumption, fuelled by growing household indebtedness."
John Albertson, chief executive of the Retailers' Association, said his members hoped tax cuts, cheaper petrol and lower interest rates would find their way into people's pockets in time for a last-minute rush, which traditionally starts 10 days before Christmas.
"It's hugely competitive and obviously there's concern that the market is a bit soft," he said.
Richard Kornman of Leonard's Smallgoods said smaller Christmas hams were in vogue this year.
And sales over the internet were growing, although supermarkets had been "a little more conservative" than in other years with what they had ordered.
Mr Kornman said many of his corporate clients had decided not to order hams for staff, or had ordered half-hams instead.
Carlton Party Hire sales manager Craig Higginson said the first quarter of the financial year went well, but things had flattened out.
"Although there was a good start to the year, the spike in demand is going to be smaller leading up to Christmas than it was last year."
At Orange Productions, while the Santa trade is thriving, its party business, catering for everything from work functions to children's parties, has experienced a quieter than usual pre-Christmas period.
Mr Robertson said customers were watching their dollars and wanting more bang for their buck, whether it was a bouncy castle or gourmet-catered event.
"We haven't really dealt with anyone with an open-chequebook policy."
HOLIDAY SPENDING SPIRIT HIGH
A slowing economy may have dented retailers' confidence, but is yet to curb Kiwis' enthusiasm for their summer holiday, with 62 per cent of respondents claiming they would spend the same or more than last year on this year's Christmas holiday.
Motel Association chief executive Michael Baines said bookings were ahead of last year.
"I think New Zealanders are holidaying at home this year, rather than going to the Gold Coast. The drop in petrol prices hasn't hurt, either."
KiwiRail communications manager Nigel Parry said ferry bookings were already full for many sailings.
NO CUTTING BACK
Christmas spending
* Spend less than last year 45 per cent
* Spend about the same 46 per cent
* Spend more 7 per cent
* Don't know 1 per cent
Christmas holiday spending
* Spend less than last year 34 per cent
* Spend about the same 48 per cent
* Spend more 14 per cent
* Don't know 3 per cent
* Refused 1 per cent
Source: Research NZ
