Shoppers ignore plea for restraint

Reserve Bank Governor Alan Bollard's calls for restrained Christmas spending may have fallen on deaf ears as retailers report brisk sales of big- ticket items.

But some merchants said expensive items were selling well only because shops were giving big discounts to entice buyers.

Retail and Wholesale Merchants Association spokesman Barry Hellberg said yesterday the malls he had been in contact with around the country were "pretty happy with life".

"The trade is pretty happy and, to quote one mall, they said they were bulging at the seams," he said.

Department stores had reported steady trade and malls seemed to be doing a busier trade, with one in Auckland saying it had no empty carparks.

Boxing Day sales - which last year rang up $190 million for retailers - were popular for three reasons, Mr Hellberg said.

"People are looking for a bargain; people are looking to make good on things they got for Christmas that may be faulty, and the increasing popularity of vouchers."

In Auckland, Cameron Brewer, head of the Newmarket Business Association, said expensive goods continued to be sold yesterday at high speed.

"This Christmas showed that those with the money are still parting with it."

He said a Newmarket sunglasses merchant had told him designer sunglasses retailing for $795 a pair were "flying out the door like never before".

One of the precinct's best-known apparel retailers said some shoppers were spending $2500 in one go, and a premier high-tech shop also reported a roaring trade in iPods and digital cameras.

Paymark EFTPOS, which accounts for up to 80 per cent of all electronic transactions in the country, said in the week to Christmas total spending was up by about 8 per cent on last year.

Consumers spent $872 million in the final week before Christmas compared with $814 million during the same period last year.

But even though Christmas Eve fell on a Saturday this year, giving people an extra day to shop, sales for the day reached only $135 million, far short of December 24 last year when consumers spent a record $170 million.

Alex Swney, chief executive of Heart of the City, which represents 1500 stores in Auckland's CBD, said Christmas Eve traffic was far lighter than expected.

"Last Saturday was not much different to any other Saturday."

Downtown shop owners were disappointed that Christmas sales were only on a par with last year and felt Dr Bollard's message to spend less was getting through.

"There was less conspicuous consumption," he said.

Mr Swney, who owns shops in Newmarket and downtown Auckland, said Newmarket's upscale items were selling but at severely reduced prices.

Mr Brewer said most of Newmarket's larger retailers offered holiday discounts and therefore attracted foot traffic and sales at the cost of smaller stores.

"Small, independent and specialty retailers struggled when bigger chains had pre-Christmas sales.

"There hasn't been universal applause [from retailers]. But trading is better than everyone predicted," he said.

The Warehouse, the country's largest retailer, said shoppers tended to spend more each day in the week before Christmas.

"There was a gradual increase throughout the week before Christmas with each day seeming to be a little more busy than the day before," said spokeswoman Cynthia Church.

Early trading until lunchtime yesterday showed signs of being just as brisk as December 23 and 24.

Christmas tales

* Consumers spent $872 million in the week up to Christmas, up from $814 million last year.

* Christmas Eve trading was down about 21 per cent on last year to $135 million.

- Additional reporting: NZPA