Holidaymakers boost Bay of Plenty retail spending to $57.6m this holiday period

Ahu clothing sales assistant Tatiana Ruaiti. Photo / Andrew Warner

Business in the Bay of Plenty has been "booming" thanks to out-of-towners, new figures reveal.

Electronic transactions from Worldline NZ show holiday season spending in the Bay was up 11 per cent compared to 2020.

But some say the rise of inflation made spending appear more impressive.

In the seven days ending January 4, shoppers in the region spent $57. 6 million on retail.

Nationally, liquor merchants earned $16m on New Year's Eve, an increase of 13 per cent compared to 2020.

Excluding spending in the hospitality industry, Worldline NZ recorded a nationwide total of $696m in retail earnings between December 29 and January 4.

In Rotorua, Q Records and Collectables owner Quentin Mcintosh said sales had been "a perfect storm since December".

Quentin Mcintosh, Q Records & Collectables. Photo / NZME

Mcintosh estimated that half of his holiday period customers were out-of-towners.

Some stock was "thin on the ground", with Ed Sheeran CDs selling out and vinyl by Whitney Houston and Adele in short supply, he said.

Mcintosh said "the weather really helped" to bring in customers.

Clothing shop Ahu sales assistant Tatiana Ruaiti said "business has been booming" in the holiday period.

Ruaiti said the shop sold out of about nine different items and sales had been equally busy during Christmas and New Year.

"Out-of-towners helped," Ruaiti said.

Laleyna Vail, owner of bohemian clothing shop Lala Mandala, said the holiday period sales felt like they were back to how it was before lockdown.

Lala Mandala owner Laleyna Vail. Photo / Andrew Warner

"It was a good time for us", Vail said.

It was great to have people coming to Rotorua from lots of regions, with Auckland, Taupō and Wellington visitors here in high numbers, she said.

Vail felt business was looking much more "healthy".

Compared to the previous year's holiday period, Vail said business was about the same and she is hoping consistency will lead to the shop opening all year round.

Mcleods Booksellers manager Gemma Morrison said the holiday period saw lots of visitors and browsers, "lots of people were discovering the store".

Mcleods Booksellers manager Gemma Morrison. Photo / Andrew Warner

However, Morrison said sales "weren't amazing".

Sales were down from the previous year's holiday period as 2020 had a large focus on supporting local businesses, making sales go up that year, said Morrison.

Papamoa Plaza manager David Hill said during the holiday period "we not only survived but we thrived through it".

"The retailers were frantic ... we had to call people back from holidays ... people really pulled in and did double shifts and extra shifts."

Papamoa Plaza manager David Hill is glad to see businesses busy. Photo / NZME

The clothing stores, Warehouse and Countdown supermarket were particularly popular, Hill said.

Sales for boogie boards, beach chairs, blow-up pools and summer clothing went "gangbusters", Hill said.

He believed demand was due to the "stunning weather and lovely air conditioning inside the centre".

Holidaymakers would go to the beach, wander around the centre to get food and shop before heading back to the beach, Hill said.

"I think we're very lucky position being so close to the beach and in the number one domestic tourist destination in the country."

He said all businesses big or small were busy, "it's across the board - everything from your hair and nails through to your T-shirts and ice cream".

"You work hard all year to do well this time of year ... it's been such a fun environment to be working in this year in particular."

However, Tauranga Chamber of Commerce chief executive Matt Cowley said, "Once you take out inflation, the real increase in spending from last year is more modest."

Cowley said the spending increase was "unsurprising as NZ's inflation is running high [5 per cent]. Higher inflation means people are earning more, but things are also costing more to buy."

While Cowley said increased spending came from mainly inflation, it also came from Aucklanders who "needed a change of scene after their 100-plus days of lockdown and they couldn't travel overseas so they flocked to the out-of-town coastlines, like in the Western Bay".

Cowley said spending was seasonal, "businesses earn profit over the summer months to get them through the quieter winter months".

"It's important for businesses to make hay while the sun shines as they need to replenish cash reserves after last year's Covid-19 interruptions."