Shoppers spend $248.2 million on Black Friday weekend, but retailers are still struggling

Wednesday, 1 December 2021

Black Friday spending was up seven per cent this year, according to Worldline data.

Shoppers spent $248.2 million in the four days from Black Friday to Cyber Monday, a 7 per cent rise compared to last year, according to data from electronics payment network, Worldline.

But Retail NZ chief executive Greg Harford said the sector was still struggling to recover from the August lockdown.

Taranaki had the biggest spending increase, jumping 24 per cent, followed by Wairarapa, up 16 per cent.

Worldline head of data, George Putnam, said, “overall, this record spend for the Black Friday sales weekend marks a strong start to the Christmas spending season”.

Retail NZ chief executive Greg Harford says it is unlikely December trading will allow retailers to fully recover from this year's lockdown.

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“Covid-19 did impact on spending patterns between regions and sectors, but overall, people have gone out and taken advantage of the many sales on offer.”

In Auckland and Northland, shoppers took advantage of shops being open for the first time in months, by spending $109.8m, up 7 per cent last year and 10 per cent pre-Covid-19.

Putman said spending was strong at hardware and furniture sellers in the region, but sales of electrical goods were below pre-Covid levels.

Cantabrians splashed out $31.8m, while Wellingtonians spent 3 per cent less than last year, at $26.2m.

“The Covid effects tended to vary. Spending in regions such as Marlborough, West Coast and Otago was up on last year but remains below pre-Covid levels,” Putnam said.

Shoppers in regions outside the large centres, including Waikato, Bay of Plenty, Taranaki, Whanganui and Wairarapa, spend between 16 and 28 per cent above pre-Covid levels.

Harford said, although the Black Friday sales had given retailers a good boost, they were still struggling.

“Black Friday has created some positive momentum heading into Christmas, but it is going to be a hard road ahead for many retailers,” he said.

“Even if December trading is extremely strong, it will be unlikely to allow businesses to recover fully from the losses incurred since the lockdowns began in mid-August.”