Whanganui business owners say spending has slowed in central city; some confidence as new businesses come to town

Business Whanganui chief executive Helen Garner says uncertainty is contributing to the challenge with business owners' confidence levels. Photo / NZME

Whanganui business owners are noticing a slowdown in consumer spending and hope the situation does not worsen in the coming months.

Business Whanganui chief executive Helen Garner said the current business environment was not ideal, and there was no clear picture of how things would progress over the next three to four months.

“The thing is there are so many unknown factors ... We know it is going to get better but is it going to be six months, 12 months or 24 months?

“We don’t have the clarity that we feel we’ve had before and I think that uncertainty is contributing to the challenge with our confidence levels.”

Mainstreet Whanganui general manager Des Warahi said Whanganui spending in May was up 7.6%.

“Spending is reasonably high considering the climate. The highest growth area was in the lower parts of the CBD.”

Warahi said that snapshot showed it was reasonably healthy in the CBD and there were about four new businesses - such as Burger Fuel - coming into town, which was a good vote of confidence.

“That shows us that people are investing and there is some confidence in the CBD.”

Cactus Creme Cafe owner Sonita Sey said it was hard for business owners because they had to raise prices to keep up with suppliers, but often customers did not understand.

“The cafe is still busy, we still feel like the customers are spending money.

“I’m still worried if in the future the costs will keep going up, but how we are doing now we can still afford to live.”

Les Kiriona, owner and operator of Frank Bar and Eatery and Mint Cafe, thought people were still going out to cafes and bars to socialise but the amount they were spending was down.

“They might just have a coffee or something light, or they’ll share a plate.

“You can’t complain about it because it has been tough for people to come out and spend, and the ones that do, you just have to look after them.”

He said it was important to remain positive as a business owner and “to put your head down and just keep going”.

Recycle the Label owner Liberty Bracegirdle had noticed a slowing down of sales but it was not too bad yet.

“I think customers are still coming in, it’s just they’re really watching what they’re spending.

“In the way of sales, I think we have probably slowed down a bit but because we are sustainable, pre-loved clothing I think people are looking at that option rather than brand new.”

Garner said as discretionary spending was low, businesses needed to be planning ahead for how they would survive the coming months.

“Our advice to businesses at the moment is to seek support where you can through the present time.

“But you need to know your numbers, and if you think you won’t be able to survive the current conditions for at least another six months, then you need to talk to your professional advisers.”

Eva de Jong is a reporter for the Whanganui Chronicle covering general news stories. She began as a reporter in 2023.