2022: A record year for consumer spending

Monday, 9 January 2023

New Zealanders spent a record-breaking amount last year.

New figures from Worldline show shoppers collectively spent almost $36 billion last year.

Excluding spending on hospitality, $35.93b was spent in 2022 through the electronic payment network, up 4.5% on the record 2021 total.

Compared to pre-pandemic levels in 2019, the almost $36b figure was up 13.6%.

The average transaction last year was $52.01, an increase of 2.5% from 2021.

* Palmerston North shoppers spend $2.7m on Boxing Day retail

Here’s how New Plymouth's $24m Lotto winner could spend their winnings.

* South Canterbury's Boxing Day spending increases by 9% compared to 2021

The record annual spend and increase in transaction value is largely believed to be the result of inflation and the rising cost of goods across all retail categories throughout 2022.

Worldline NZ chief sales officer Bruce Proffit said inflation and recovery from lockdowns were behind the record spending figures last year.

He said the average transaction size increased across every core retail category. However, he said these increases did not match the 2022 inflation rate, which suggested that shoppers had adjusted their spending to meet their budget constraints.

The end of lockdowns and the Covid-19 framework benefitted the hospitality sector greatly, with spending up 11.9% last yea to $10.92b through the Worldline network.

Worldline said consumers spent more last year than in any full year previously through the network, but the spending pattern was mixed by year-end. This trend had continued into the new year.

Spending in the busy six-week pre-Christmas period was slightly down on 2021, with a marginal increase in spending recorded in the full month ofDecember.

Last month $3.92b was spent, up 1.5% on the previous December and 15.6% compared to pre-pandemic levels in 2019.

Spending in the first seven days of this year was up 1.6% on last year and 19.7% on 2019 levels.

The year started with the highest annual regional spending increase in Otago, up 12.6%, followed by Southland at 11.3% and Palmerston North 10.2%.

Chris Wilkinson says shoppers will be more cautious with their spending this year.

Spending was below the first seven days of 2022 in Waikato, down 3.4%, Bay of Plenty, down 5.4%, and Taranaki, down 3.3%. It was also down in Wairarapa and Wellington in that week.

In the seven days ending January 7, $661 million was spent throughout New Zealand.

The highest proportion of that spend was in Auckland, accounting for $226m, followed by $73.3m in Canterbury and $58.6m in Wellington.

Retail commentator Chris Wilkinson said shoppers had to “spend more to stand still in 2022”.

Despite Kiwis having had pulled back on spending on big ticket items, such as home appliances and home improvement products, he said the record spend in 2022 could be largely attributed to the spike in prices.

“People have been spending more just to stand still,” said Wilkinson. “[But] a lot of people provisioned-well for themselves.”

Wilkinson said he believed some of the increase in spending could be attributed to “carry over spend’ or pent-up desire to spend fuelled by earlier years’ lockdown.

However, he said he expected retail spending throughout this year to be a different story, with consumers to tighten their purse strings further.

“I think people are going to be incredibly mindful of where their money goes. The cost of living increases are effecting everyone and people will be looking to maximum value for their dollar.”