Hairdressers a cut above
Retail spending bounced as the country moved to level 2, according to figures from Paymark.
Spending for the week ending May 17, which had both level 3 and level 2 days, was just 11 per cent down on last year, it said.
One outlier was the beauty and hairdressing sector, with sales currently running 61 per cent above last year’s figures.
During level 4, spending at retail merchants through Paymark, including supermarkets, was about half the levels seen a year ago on average. But if supermarkets, liquor outlets and pharmacies were excluded, the remaining retailers saw spending of around 90 per cent below a year ago.
Spending during the first four days of level 2 was uneven: supermarkets and some dairies and superettes had remained busy, but petrol stations were down in all three levels, Paymark said.
Spending at pharmacies and fruit and vegetable stores during level 2 was about 27 per cent up on last year; and spending on takeaways, specialised food shops, liquor outlets, garden centres and stores selling electronics, appliances, hardware and floor coverings had also been strong, up about 30 per cent.
But spending at other retailers, including clothing stores, sporting equipment or books, as well as the hospitality sector, remained, on average, 7 per cent down after the country moved to level 2.
The move to level 2 brought hopes of increased spending to help the retail sector recover, but while the first day resulted in queues outside stores across the country, retailers reported that it wasn’t a big day for sales.
Sylvia Park in Auckland, one of New Zealand’s largest shopping centres, said foot traffic was ‘‘comparable to a normal Thursday in May’’.
First Retail managing director Chris Wilkinson said many people were still wary about going out.
‘‘We were expecting that the return into retail would be very considered. People were not . . . splashing out on discretionary purchases. They were focused on functional items.’’
Many Kiwis were also still working from home, meaning they were away from retail centres, Wilkinson said.
There were bright signs, as consumers gained confidence. ‘‘As soon as people hit that normality, we are in a much better position,’’ he said.