Gadgets help boost year-end retail sales
Cut-price televisions and musthave smartphones and ipads helped make for record retailing in the December quarter.
The Rugby World Cup also bolstered spending, as shoppers stocked up at supermarkets and filled hotels, restaurants, bars – and their cars.
Core retail sales, excluding vehicle-related industries, rose a record 2.9 per cent in volume on the September quarter. Sales values rose 2.3 per cent to $13.7 billion, seasonally adjusted Statistics New Zealand figures show.
The volume of electrical and electronic goods sales nationally also broke records – up 10 per cent in the quarter.
Smiths City group managing di- rector Rick Hellings said electronics, especially televisions, were heavily discounted in the quarter.
‘‘Technology products were flavour of the month – phones, ipads and other tablets were popular.’’
Electronics spending had softened subsequently with the end of the Christmas sales period, he said. ‘‘A lot of [the spending] was discount-driven.’’
He predicted another tough year in retail but said the buoyant exchange rate would continue to sweeten the price of imports.
‘‘Demand will stay reasonably subdued and there’ll be some good deals around. I think people are still concentrated on reducing debt, particularly in that lower North Island area where there’s going to be some restructuring of government departments.’’
New technology in the form of smartphones, tablets and laptops would ensure some spending.
‘‘There are always people looking for the latest technology.’’
Noel Leeming also reported strong sales for the December quarter, with tablets and smartphones among the hot sellers.
But not all electronics retailers were cashing in. Dick Smith plans to close up to five underperforming stores in New Zealand, while Mark Littleford – owner of retailer and repairer Littleford Colourvision in Lower Hutt – said business was extremely tough.
The advertising muscle and deep discounts of major retailers were killing off smaller independent players, he said.
‘‘There’s been a steady decline [in sales] over the past 10 years. There are very few of us left.’’
The strength of the NZ dollar was a double-edged sword. While he could buy stock for less, people were more inclined to replace broken goods than repair them.
He expected the digital TV switchover – which begins this year but will affect Wellingtonians next year – would provide a sales lift, as people bought set-top boxes and new TVS.