Christmas Shopping Starts Strong: Consumer Spending in New Zealand Sees Positive Growth

As we approach the festive season, it seems New Zealanders are starting their Christmas shopping earlier this year. The first full week of December saw a notable uptick in consumer spending, signaling a promising start to the usual December build-up ahead of Christmas Day.

A Strong Start to December Shopping

According to Worldline NZ’s payments network, consumer spending processed through all Core Retail merchants (excluding hospitality) reached $818 million during the first week of December. This marks a 3.8% increase compared to the same week in 2023, reflecting a positive shift in consumer behavior after several months of spending below last year's levels.

Bruce Proffit, Worldline NZ’s Chief Sales Officer, highlighted that this growth will be encouraging for retailers, who are hoping to see a more favorable December sales trend. He also pointed out that the first week of December, which included some extended Black Friday sales, had a 1.2% higher spending level than the final week of November, which had been impacted by the Black Friday rush.

Holiday Shopping Trends

Despite the sales surge from Black Friday, the first week of December showed increased spending across various merchant categories, indicating that New Zealand consumers are already gearing up for the Christmas festivities. The biggest increase in spending was seen in food and liquor purchases, which is typical as people begin preparing for holiday meals and gatherings.

Spending in the early days of December has generally been strong, and according to Proffit, this upward trend is expected to continue as we move closer to Christmas Day. Traditionally, spending peaks on Christmas Eve, especially for food and liquor stores, based on historical patterns.

Regional Spending Patterns

The spending surge has not been uniform across the country. Some regions have seen stronger growth than others, with the Hawke’s Bay leading the charge, reporting a 9.1% increase compared to the same time last year. Other regions showing strong growth include Wairarapa (+8.8%) and Gisborne (+7.6%).

On the other hand, some regions have experienced more modest growth. Spending in Palmerston North saw just a 0.4% increase, while Wellington and Bay of Plenty showed relatively lower increases of 0.7% and 1.7%, respectively.

What’s Next for Holiday Shopping?

With Christmas fast approaching, consumers are likely to continue their shopping sprees, especially as we get closer to Christmas Eve. Retailers can expect even higher traffic in the final weeks leading up to the big day, particularly in the food and beverage sectors, which typically see the highest demand.

The first week of December’s strong performance offers retailers a much-needed boost after a slower year, and it’s a promising indicator of the upcoming Christmas season. As consumers continue to stock up and cross items off their holiday shopping lists, we can expect an exciting finish to the year in New Zealand's retail landscape.