Coronavirus: Kiwis spending big on beds, planning renovations

Thursday, 25 June 2020

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If you've been busy kitting out your home after lockdown, you're not alone.

From beds to bathroom renovations, Kiwis are investing the money saved on overseas travel in making their living spaces more luxurious, those in the know say.

Briscoe Group managing director Rod Duke said business has been booming across its homewares stores since coronavirus restrictions eased.

'It's pretty brisk at the moment, that's for sure. All the folks who would traditionally be out of the country in June, July and August have nowhere to go so they're making home as comfortable as possible,' he said.

Kiwis are stocking up on home textiles like towels and bedding.

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Briscoe Group boss Rod Duke says business is booming across its homewares stores.

Duke said Briscoes was New Zealand's largest seller of home textiles, like towels and bedding, and those departments are 'on fire.'

Portable kitchen appliances and other kitchenware are also in high demand but as the country gets even closer to completely normal operation, another part of the business is benefiting.

'With school and club sports restarting, sports equipment is flying out the door at Rebel,' he said.

Chris Taylor, general manager of The Comfort Group, said demand for beds had also spiked after lockdown lifted.

Bed sales have spiked since lockdown lifted and Kiwis are buying better mattresses, Comfort Group boss Chris Taylor says.

'It's been unbelievable. Lockdown was a tough time for our industry, like it was for many others, but we've got all three New Zealand factories back up and running and we didn't have to make any redundancies,' he said.

The Comfort Group makes beds under brands including Sleepyhead, Serta, Tattersfield and Beautyrest, and employs about 500 people.

Orders for beds have increased by about 50 per cent and sales are being made across the board, including kids beds.

'People are buying better mattresses, that's the really obvious change,' Taylor said.

'They're more concerned about health and wellbeing after Covid-19 and they want to buy the best mattress they can.

'The question lies around how long this buying boom will last but while international travel is non-existent, it certainly looks like people are keen to invest in their homes.'

Home renovations are a top priority for many Kiwis after lockdown.

Independent economist Tony Alexander said research showed many New Zealanders plan to invest money saved by not travelling overseas in home improvements and domestic travel.

Alexander runs a monthly survey of consumer spending plans and said last month's results showed people were expecting to spend more on home renovations, gardening supplies and groceries, as well as investing in property and shares.

Many respondents planned to spend less on restaurant meals, footwear and clothing, and motor vehicles.

Provisional data from this month was similar, with much of the planned spending going on renovations garden supplies, as well as exploring the country.

'The key difference this month is that domestic travel has come out on top at net 41 per cent,' he said.

'So that's good news for places like Rotorua and Queenstown.'

The net percentage is calculated by subtracting the number of people planning to spend less on an item from the number planning to spend more.

Planned home renovations came in at net 23 per cent, up from 18 per cent last month.

Registered Master Builders chief executive David Kelly said post-lockdown conditions were great for building or renovating.

'Interest rates are low, and we have skilled capability and strong capacity in the sector,' he said.

'As some projects have been postponed in the current environment, many builders and the other tradies, have the availability to get your job done.

'Many people recently experienced delays because of high demand. This is unlikely to be the case now.'

Alexander's survey also looks at why people plan to spend more.

'At the moment, 31 per cent say they're spending money saved from not travelling overseas and 29 per cent are still catching up on delayed spending,' he said.

'Others say they're shopping more to support local businesses.'

Alexander said New Zealand's post-lockdown shopping was following international trends and the splurge was unlikely to last.

'We know from around the world that people have been trying to make their homes better but I think that will be temporary.

'It won't be sustainable for many people.'