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Last minute shoppers hit the malls - but will the weather dampen spending?

Friday, 20 December 2019

Kiwi shoppers are hitting the malls five days out from Christmas.

But the wild weather and a big Black Friday spend could have an impact the final shopping figures, First Retail Group director Chris Wilkinson said.

Scentre Group general manager for New Zealand Paul Gardner said customer numbers at the Westfield malls have been reaching peak levels since Wednesday.

'We are starting to see traffic volumes exceeding last year,' he said.

The newly built Westfield Mall Newmarket opened in August. It had been busy in the lead up to Christmas.
The newly built Westfield Mall Newmarket opened in August. It had been busy in the lead up to Christmas.

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Gardner said the assistance from transport agencies such as Auckland Transport had made all difference to the traffic, easing congestion around the company's Auckland malls.

The weather had not impacted customer numbers, he said.

Malls last year saw a massive uptick in shoppers in the lead up to Christmas. Experts are expecting the numbers to be big again this year (file photo).
Malls last year saw a massive uptick in shoppers in the lead up to Christmas. Experts are expecting the numbers to be big again this year (file photo).

'This is the time of the year that weather impacts tend to be softened out by the general requirements to get shopping down,' he said.

'If people have left this job to the last minute, as we tend to in New Zealand, then it just has to be done. There is a deadline coming up next week.

So, irrespective of the weather, they have to come out.'

Gardner expected Sunday to be the busiest for retail, before people headed away for the holidays.

Weather, particularly in Wellington, could dampen sales numbers, Chris Wilkinson from First Retail Group says.
Weather, particularly in Wellington, could dampen sales numbers, Chris Wilkinson from First Retail Group says.

Historically, spending in the last seven days before Christmas rose to around 50 per cent more than the average week during the rest of the year, figures from Paymark showed.

During the same period, spending doubled for the likes of department stores, recreational goods shops, clothing outlets and liquor stores.

According to Paymark figures, the pre-Christmas spend started strong with Black Friday sales, eased a little in the week after but then stepped up again last week.

New Zealanders spent more money through Paymark connected eftpos machines in the second week of December ($1452 million) than during the first week ($1403m).

However, spending on any one day did not surpass the two busiest days this year, Easter Thursday ($263m) and Black Friday ($253m), but last December 13 ($235m) ranked third for the year so far.

Wilkinson said retailers embracing Black Friday had had an impact on traditional Kiwi spending habits.

'Spending will be up but dispersed wider this year, he said.'

'Especially given this has been a year of openings from the likes of Westfield Newmarket through to Kmart in Invercargill, while more retailers jumping on the bandwagon of Black Friday muted performance of those early adopters that did well last year.'

Wilkinson said the poor weather was taking it's toll for some retailers, particularly home and garden stores.