Coronavirus spending bounce
New Zealanders spent up large at supermarkets, butchers and on alcohol ahead of the March 26 alert level 4 lockdown.
In the lull caused by the lockdown, spending stayed high at supermarkets, 40 per cent above normal, while dropping in nearly every other category.
‘‘Normal’’ was calculated as the spending levels recorded on March 19.
Kiwis moved their retail therapy online, with increases in spending on digital entertainment and online shopping, particularly once the country moved to level 3.
At level 2, spending bounced again, particularly in fast food, cafes and beauty services.
Jarrod Kerr, chief economist at Kiwibank, said the figures, while obvious, told a story about how New Zealanders responded with their wallets during the Covid-19 crisis.
‘‘This data shows we were forced to basically spend on groceries and a few online items during lockdown. As a percentage of our total spending, spending on groceries went from 20 per cent to about 40 per cent,’’ Kerr said.
‘‘But what was most important about this data is how we returned to normal in level 2.’’
Spending since showed strong bounce backs in many categories, Kerr said.
Petrol and diesel spending, for example, spiked right back to prelockdown levels.
Kerr said he was surprised by how quickly people got back into their cars.
‘‘The one interesting category for us, I think, is the structural shift in online spending. I think
we were trending towards buying more online but the lockdown has accelerated that trend to online.’’
The lockdown gave shoppers the opportunity to become more familiar with online shopping.
‘‘They probably found that its easier and more convenient and there is a lot more available online,’’ he said.
‘‘Job security is still front of mind for many New Zealanders,’’ Kerr said.
‘‘There’s an understandable reluctance to go out and spend given such uncertainty. Moreover, there’s still a clear sense of caution in the air. New Zealand has done incredibly well in managing the spread of Covid-19, but we’re all fearing a second wave and if history’s any guide, it’s possible.’’
‘‘The one interesting category for us, I think, is the structural shift in online spending.’’ Jarrod Kerr, chief economist at Kiwibank