Tills ringing but it's not all profit

Wairarapa pharmacies may be bringing in more money on paper but that doesn't mean their profits are up, a local business owner says.

Figures released by Paymark, which processes about 75 per cent of New Zealand's electronic card transactions, showed $34.5 million was spent in Wairarapa last month - a 2.9 per cent year-on-year increase.

Nationwide, consumer spending jumped 3.9 per cent during the first four months of 2013, with retailers reporting a buoyant trading period.

Increased spending was highest at building and hardware stores (up 9.6 per cent) and pharmacies (up 6 per cent).

Co-owner of Duncan's Pharmacy Kuripuni and The Chemists in Masterton, Hamish Duncan, said while statistically the spend was up, pharmacies weren't making any more money.

Numbers were up due to a rise in the "co-payment" on prescriptions - the contribution a patient makes towards the cost of the medicine - which came into effect on January 1.

"It used to be $3 and now it's $5. It's just a Government tax."

Meanwhile, the country's hospitality businesses also recorded increased sales (up 4.8 per cent), along with food and liquor outlets (up 4.1 per cent).

It had been a "positive start to the year for retailers in general", Paymark spokesman Paul Whiston said.

The number of card transactions last month was 6.2 per cent higher than a year ago, with credit card usage up 10.5 per cent and debit card usage up 4.9 per cent.

NZ Retailers Association chief executive John Albertson said there was a slightly better feeling of optimism at the moment amongst retailers.

"The feedback is more positive than it has been for a while.

"It's a funny market at the moment because you can't say everyone's having a boom time or everyone's having a lousy time, it's a very mixed bag."APNZ