"We've got a growing population with 800 new residents moving here in the past 12 months and CBD occupancy is at its highest level since 2010," Wright said.
"We also know that visitor spend in Rotorua continues to increase, so all of these factors will be contributing to the overall retail spend.
"This positive momentum is great news for Rotorua as it helps to build investor confidence, encouraging existing businesses to reinvest and attracting new businesses to the city."
Rotorua Chamber of Commerce acting chief executive officer Bryce Heard said it appeared the food and liquor increase was keeping pace with the Consumer Price Index (CPI).
"But a real increase in homeware and hardware is a sign that people are upgrading/replacing their assets," Heard said.
The Living Room Collective owner Tammy Cowlishaw said this year had definitely been busier than last, including the Christmas period.
"I think Christmas shoppers were a bit slow to start this year, but now they have they are making up for lost time."
She believes a change in confidence of shopping in Rotorua has also attributed to increasing sales.
"There is certainly an awareness that Rotorua offers a number of places to shop now. While I don't think this has made a difference to international customers, we've seen more visitors from places like Auckland and Wellington instore.
Atlantis Books co-owner Greg Price described the past few days as "pleasingly busy".
"It hasn't been crazy busy but it's definitely been busy."
Price had also noticed more visitors to Rotorua who were shopping while holidaying.
"I would say a lot of sales within the past six to eight weeks have been to holiday-makers and I'm hoping that continues into January."
Monkey Kids owner Kimberley Edwards said things had got busier in recent days but she and her staff had been spending more time with customers this year compared to last.
"I believe people are becoming very aware of everyone having too much so they have become a little more discerning in what they are buying. They're going for quality not quantity and also buying gifts that are timeless, that will still be around in years to come."
Recalling Christmas falling on a Tuesday seven years ago, Edwards said she expected Monday to be quiet.
"Many people have packed up and left for their holiday destination by then."
Rotorua Mitre 10 MEGA store general manager Ray Rehu said an increase in hardware and homeware expenditure had been significant.
"We have been seeing good growth for the past 12 months but, in particular, the past eight months have seen it go ballistic.
"I don't think it can be attributed to new residential builds which remain sluggish as the land is not available, but there has been an increase in commercial build spending.
"In saying that our local tradies are crazy busy and I think most of that is renovation work."
Rehu said people in Rotorua were spending money upgrading their homes.
"A lot of people have more equity in their properties than they did two years ago and appear to be more prepared to borrow to do some work."
