Shoppers dial up Black Friday deals

Shoppers spent more on long-lasting goods such as cell phones and laptops in November 2020 than the same month last year, but spending remains well down for accommodation and fuel, Stats NZ said today.

Total retail card spending rose 1.4 percent in November 2020, up $85 million, compared with November 2019.

“Some sectors, like electronics, are doing much better than last year, but others are lagging behind because of the international travel restrictions introduced to slow the spread of COVID-19, along with a drop in petrol prices,” retail statistics manager Sue Chapman said.

In actual terms, spending on long-lasting goods (durables) had the largest retail industry rise, up $143 million (8.5 percent) from November 2019. This industry includes furniture, electrical, hardware, department stores, and sports goods.

“The rise in November spending on furniture, electrical, and hardware coincided with Black Friday sales at the end of month,” Ms Chapman said.

The rise in durables was mainly driven by furniture, electrical, and hardware retailing, up $141 million (19 percent) over the year to the highest November month since the series began, and close to levels seen in the peak sales month of December.

“Black Friday promotions were strong in November, resulting in large sales in electrical and hardware retailing,” Ms Chapman said.

“Kiwis are also continuing to spend on their homes, as well as on sporting and outdoor activity equipment leading into the summer holidays”.

Grocery and liquor (consumables) spending had the next largest increase, up $115 million (5.3 percent).

Hospitality dips in November

The biggest falls in card spending came from fuel and accommodation.

Spending on hotels, motels, and other accommodation was down $90 million (38 percent) compared with November 2019.

“This followed the big drop in international visitor arrivals in recent months, to thousands a month rather than hundreds of thousands a month in 2019,” Ms Chapman said.

In contrast, November 2020 spending on eating out (food and beverage services) was down just $6.6 million (0.7 percent) on November 2019, despite the much lower international visitor numbers.

“Kiwis are eating out almost as much as in November last year, but they are not spending enough on nights away from home to fill the gap left by overseas tourists” Ms Chapman said.

Fuel spending remains low

The fuel industry experienced the biggest fall, down $101 million (17 percent) compared with November 2019, reflecting lower fuel prices.

Prices at the pump were down around 30 cents compared to this time last year.

Non-retail (excluding services) was down $152 million (8.2 percent) – this category includes travel and tour arrangement services heavily affected by international border restrictions, rental and hiring services, and gambling.

“Spending through travel agents and other tour services was down $130 million (86 percent) on November last year, with international travel largely off the agenda since late March,” Ms Chapman said.