By Sarah McMillan/cvnznews.com
The latest electronic card transaction data from Stats NZ shows New Zealanders have made some cutbacks in the wake of the current fuel crisis, but they are still willing to spend.
The card transaction data for the month of April shows the actual spending in core retail is up 1.4% compared to April last year, though it’s down slightly compared to last month.
“These figures show us that while New Zealanders’ budgets have taken a hit from the increase in fuel prices, they are still out in our stores buying the essentials,” Retail NZ Chief Executive, Carolyn Young, says.
“There were slight increases in actual spending in both consumables (1.7%) and durables (1.9%), which tells us that shoppers are still buying what they need, rather than cutting their spending entirely,” Ms Young says.
“However, the consumables spend is well below the inflation rate and is the lowest year-on-year increase for the last 12 months, which indicates households are making their savings by reducing their grocery spend,” she says. “Whether it’s by leaving treats on the shelves or choosing the cheaper brands or specials instead of the family favourites, Kiwis are finding ways to make their money go further.”
The biggest blow was to the apparel sector, with the actual monthly spend down 2.9% compared to April last year.
“While amount being spent on apparel did not fall as dramatically as we saw in March, it is still a significant dip for a sector that’s been struggling so much over the past few years,” Ms Young says.
“It tells us consumers’ discretionary income in continuing to fall, and the savings they’re making by shopping smarter at the supermarket are only just enough to get by, as the cost of living continues to rise.”
