Boxing Day sales a much-needed boost to capital’s Golden Mile

Friday, 27 December 2024

Wellington’s retail strip was packed on Boxing Day, possibly indicating a positive rise in shoppers for the capital.

Wellington’s tarnished retail crown may be regaining a bit of its shine, with shoppers pouring into the Golden Mile on Boxing Day.

Much has been written about the city’s woes, with data from Worldline showing the capital experienced a -0.9 decline in core retail spending from 2023 to 2024.

With fewer jobs available in the city ‒ although not as many as previously thought ‒ and a cost of living crisis in full swing, the hospitality and retail industries have both been affected.

However, Retail NZ reports customer spending is already starting to increase, while Golden Mile retailers told The Post they were seeing an up-tick in shoppers in the lead up to Christmas. Some retail staff said they believed the Black Friday sales were now bigger than Boxing Day.

Friends Sophie Cunningham, Haylee Philip, and Addison Marshall were among the mnay shoppers on Lambton Quay on Boxing Day.

Despite the capital’s city centre being near deserted on Christmas, Lambton Quay was buzzing on Thursday.

Tourists from the cruise ship Celebrity Edge, which docked at the port 7am, added to the throngs.

Retail NZ chief executive Carolyn Young heard sales had been “pretty strong” for Wellington retailers.

“I've spoken to quite a few retailers and I've been really happy with the foot traffic and the number of sales that they're making.”

While it was too early to know whether the Boxing Day sales had been bigger than the Black Friday, Young said December data would show whether the capital’s retail scene was “starting to come out the other side”.

Many businesses worry if a Golden Mile revamp goes ahead next year, the construction could hit them hard.

The 3000-odd cruise ship passengers were a welcome boost, she said.

“Needless to say, everyone is pretty happy right now.”

Laine Ruscoe, who is the co-owner of streetwear store Statement, said the day had gone pretty well.

Although quiet when the store opened around 9am, the foot traffic “picked up heaps”.

Customers were coming into the store in waves, and they appeared to be shopping in groups.

He imagined other areas of Wellington were also seeing an increase in customers.

Tom Nichols and Jamie Wildash-Chan were in Wellington for the Boxing Day sales, shopping with friends.

Both purchased electronics. The two friends got a sizeable discount on their purchases, so they were both happy.

While the situation may seem dire, the large number of shoppers in Wellington may indicate a trend in the right direction, with retailers previously saying they remained hopeful things would change in the upcoming months.

The industry was already beginning to see positive changes, with the Government’s decision to increase the minimum wage to $23.50 an hour looking to be extremely helpful for retail staff, Young said previously .

The announcement was made before Christmas, which would give employers the time needed to make arrangements, she said.

“Every cost increase has to be passed on to consumers so we are pleased the Government has limited the adult minimum wage rate increase to 1.5%.”

Young also said the Accredited Employer Work Visa had also been changed, in that the median wage requirement had been removed.

The need to pay a median wage had been a barrier to using migrants to fill lower skilled rolls, so the requirement being removed would be helpful to employers, she said.