Retailers look to life after Covid
Wellingtonians are back in force but they are not shopping like they used to.
Four weeks on from New Zealand’s move to coronavirus alert level 1, life is all but back to normal in the nation’s capital, with state highways bustling and bus passengers practically back into full swing.
However, the extra activity is only slowly transferring to retail spending, with store numbers in Lambton Quay in central Wellington down by up to 30 per cent over the past five weeks.
But the figures are trending upwards and although visitor numbers are down, spending is up – the average transaction in the last two weeks of June was up to 20 per cent higher than at the same time last year.
First Retail Group managing director Chris Wilkinson said the figures, compiled by Bellwether, showed fewer people were shopping but those who were spending were not afraid to splash out.
‘‘There was a general feeling that there would have been greater caution by consumers but we have not seen this yet.’’
That may be true but some store managers say the continuing uncertainty of the retail market over the past month has made for a difficult time.
Maher Shoes retail manager Alexander Mulholland said sales had been wildly inconsistent over the past few weeks, and many shoppers were hesitant to spend. ‘‘For our store, it is really hit and miss. One week could be great and the next week could be shocking.’’
Although store visitors were gradually increasing, people were hesitant to spend money in early June, Mulholland said.
Cranfields owner Nicola Cranfield agreed with Wilkinson that many people were now ‘‘purpose shopping’’, rather than browsing.
‘‘We have had less foot traffic than pre-Covid – you can definitely tell a lot of people are still working from home.
‘‘But that has been compensated by the people who have made a really concerted effort to come in and support us.’’
The Bellwether data showed footfall in Lambton Quay was down 23 to 31 per cent for May 25 to June 28, compared with the same time last year.
Transactions were down by up to 23 per cent in that time.
Finance Minister Grant Robertson said shortly before New Zealand moved to alert level 1 that he wanted to see as many workers as possible returning to central Wellington offices. The message came after some government departments indicated that staff
may choose to work from home permanently post-Covid. A State Services Commission spokesman said the organisation did not keep figures on how many workers had returned to offices but the level 1 guidelines were for all government departments to return to the working arrangements in place before the virus hit.
And judging by commuting figures, it appears that has happened. The latest data from the New Zealand Transport Agency shows highway traffic was all but back to pre-coronavirus levels by the end of June.
As of July 1, the five-day average for light vehicles on state highways 1 and 2 (47,567) was more than 95 per cent of what it was at the same time last year.
A Metlink spokesperson said bus patronage for June was 84 per cent of what it was last year. However, because public transport was free, the figures were from a combination of Snapper card and observational data. Actual numbers could have been even higher.
Train patronage was officially 56 per cent of what it was last year, although data was collected only through observations on-board and at stations.