Card spending up as COVID-19 alert levels fall

Retail card spending rose in September 2020 compared with August as the Auckland region moved from COVID-19 alert level 3 to alert level 2, with a few extra restrictions, Stats NZ said today.

“Retail spending rallied in September as Auckland moved down to COVID-19 alert level 2, plus extra restrictions, at the start of the month and the rest of New Zealand dropped to alert level 1 later in the month,” retail statistics manager Kathy Hicks said.

In actual terms, retail spending using electronic cards was $5.7 billion in September 2020, up $389 million (7.3 percent) from September 2019.

Month$
Sep-185314370000
Oct-185680681000
Nov-185874061000
Dec-186936024000
Jan-195653182000
Feb-195238730000
Mar-195754460000
Apr-195470002000
May-195520094000
Jun-195280275000
Jul-195359308000
Aug-195485007000
Sep-195345536000
Oct-195769564000
Nov-196171222000
Dec-197209206000
Jan-205891439000
Feb-205691140000
Mar-205651491000
Apr-202870608000
May-205188203000
Jun-205701230000
Jul-205968957000
Aug-205438997000
Sep-205734401000

In September 2020, retail spending rose in four of the six industries with higher sales of long-lasting goods such as furniture, hardware and appliances, (durables) and supermarket grocery food and liquor (consumables).

IndustrySep-18Sep-19Sep-20
Consumables195023700019960220002201733000
Durables126045000012949440001544501000
Hospitality10087530001045361000993719000
Apparel278335000267630000285353000
Motor vehicles excl. fuel169169000178849000205881000
Fuel640517000555715000496344000

Retail spending picks up

Furniture, hardware, appliances, and recreational goods (durables) experienced the largest rise, up $250 million (19 percent) compared with September 2019.

“Increased spending on longer-lasting goods, coincides with Auckland businesses re-opening at the start of September, after having to close during this region’s level 3 lockdown which started on 12 August,” Ms Hicks said.

“More flexibility in working from home as well as a lift in domestic tourism has seen a boost in spending on the home (or home office) and on sports and camping equipment.”

Supermarkets, specialised foods, and liquor stores (consumables) had the second largest increase, up $206 million (10 percent) on the same month last year.

“Spending on groceries has remained strong since March as supermarkets were an essential service that stayed open throughout the lockdowns,” Ms Hicks said.

Hospitality partially recovers in September

Hospitality was up $113 million (13 percent) compared with August 2020 but was still $52 million (4.9 percent) lower compared with the same month last year.

“The school holidays occurring in the last week of September saw a boost in domestic travel and tourism spending,” Ms Hicks said.

“While eating out has increased throughout September, the accommodation spending remains low due to the lack of international visitors.”

Accommodation spending low but eating out recovers has more information on card spending on hospitality, durables sub-industries, and health care.

Fuel spending remains low

Spending on fuel was down $59 million (11 percent) compared with September last year.

“The fall in fuel spending reflects lower fuel prices than in September last year, along with more people working from home, especially in the Auckland region,” Ms Hicks said.

COVID-19 data portal shows weekly traffic counts were lower than usual in September.

September quarter

Actual retail card spending using electronic cards was $17 billion in the September 2020 quarter, up $953 million (5.9 percent) compared with the September 2019 quarter.

“Spending on groceries and the long-lasting goods have driven the overall increase in the September quarter spending,” Ms Hicks said.

/Stats NZ Public Release. View in full here.