Coronavirus: Retail spend at Auckland shops drops two thirds in a week

Saturday, 22 August 2020

There are restrictions on retail at alert level 3, with limits on how many people are allowed in store at one time.

Retail spending at one Auckland shopping centre is down by nearly two thirds as a result of coronavirus restrictions.

Paymark data released by the Takapuna Beach Business Association showed spending in the area over the week ending August 16 was down 64.4 per cent compared to the same week in 2019.

Auckland Chamber of Commerce chief executive Michael Barnett talks to Radio Tarana's Vandhna Bhan on the impact of the extended lockdown on Auckland businesses.

Just four and a half of those days were during Auckland’s alert level 3 lockdown.

The association’s chief executive Terence Harpur said he expected this week’s results, which will show a full seven days at level 3, will be much worse.

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Spending at Takapuna clothing, footwear and department stores was down 80.4 per cent, hospitality and accommodation was down 76.3 per cent and home and recreational spending was down 73.1 per cent.

The Restaurant Association's Marisa Bidois says the hospitality industry hasn’t completely recovered but has regained its footing.

Food, liquor and pharmacy spending saw only a slight dip, at 4.8 per cent.

The only unaffected industry was fuel and automotive spending, which did not drop at all.

Put together, all other spending in Takapuna was down 53.1 per cent.

Harpur said some industries were suffering “enormously” and not even a move to level 2 would make much difference.

“Restaurants, cafes, bars and retailers would re-open [at level 2] but the physical distancing requirements would force many to operate at a fraction of their usual capacity,” he said.

“Level 2 also encourages people to work from home, which again doesn’t support town centres like ours.”

Harpur called for Cabinet to place Auckland into a less restrictive alert level 1.5, saying more and more businesses are sporting QR codes, New Zealand’s ability to contract trace has vastly improved since the first lockdown, and more people are wearing masks and sanitising their hands.

Meanwhile, hospitality outlets want the Government to spend $27 million on meal discounts to prevent widespread closures and job losses.

The Restaurant Association has launched a petition calling for subsidies of up to $20 per person for meals served at restaurants, cafes and bars.

Association chief executive Marisa Bidois said the proposed scheme, based on the United Kingdom’s “Eat Out to Help Out” initiative, would apply to food served in-house from Tuesday to Thursday. It would run for a month.

“This country has an incredible hospitality scene. And if we want it to survive the pandemic’s ongoing impact, the Government needs to do something different,” she said.