Spending in the region was significantly higher than the national average.
Spending in the region was significantly higher than the national average.
Retail data for the week ending March 22, shows a significant increase in spending in the Taranaki region.
In fact, the increase of 14.5 per cent was well above the national average increase of average of 10.1 per cent.
Venture Taranaki receives weekly data which is already showing a sharp change in spending since the announcements of the four-stage alert system on March 22.
At that time the advice was issued for those over 70 or immune-compromised to stay at home and to stop any non-essential travel within New Zealand. Border restrictions were also in place in an effort to reduce the spread of the virus.
The most notable increase was in spending in the food, liquor and pharmacy area. That showed an increase of 53.4 per cent.
Home and recreational retail also increased by 15 per cent.
It wasn't all good news however, with a notable decline in spending in other areas such as fuel (down 10.5 per cent), hospitality (down 19.8 per cent) and clothing/department store spend (down 25.2 per cent).
"The sudden change in retail spend patterns in Taranaki on that first key week of COVID-19 announcements reflects what many people saw and experienced first-hand," says Anne Probert, Venture Taranaki's General Manager, Regional Strategy and Sectors.
"The initial rush to grocery outlets and pharmacies and medical outlets to stock up ahead of a potential lockdown reflects the concerns of local residents. The data demonstrates a reluctance to head out to restaurants, cafes and social gatherings, and there were changes to usual shopping patterns."
"Those travelling started to reconsider their plans, looking to head home early, or stay home, with subsequent impacts on hotels/motel bookings as well as spend in areas such transportation and fuel," Anne says.
Venture Taranaki will continue to track the changes in retail statistics she says, while also looking to introduce other measures to assess the impacts of Covid-19 on the region's economy, she says.
"We are very conscious this has impacted businesses, livelihoods, jobs and the wellbeing of our communities, and encourage any enterprise or business who is needing support during this challenging time to reach out to us. A range of support and advisory packages are available from Venture Taranaki and the Government, and these can make a real difference."
The current situation if very different to a normal economc crisis, says Anne.
"There are the jobs and people available and businesses want to operate, but they just can't. While we grapple with this unknown economic climate, and the changes to the global economy, we are also considering the route ahead and measures to stimulate recovery and support our enterprises."
She says no-one yet can really tell what economic life after the crisis will be like,
"It may be a case that the future is not 'a return to normal' for Taranaki but an adjusted world, and there is likely to be both opportunity and challenge in that. Last year, regional GDP was $8.9 billion, with Taranaki creating New Zealand's second highest level of GDP per capita ($72,702, behind Wellington on $73,029). Regional GDP growth had slowed in 2019 however, to 1.7 per cent against a national average of 5.0 per cent."
"2020 will be a different story for every region, and it will be interesting to see how the regional economy's productivity tracks over the course of this year."
