RWC spending slump disputed
Supermarket giants are disputing official figures showing a big dive in sales in the March quarter as a nasty hangover from a Rugby World Cup spending spree.
Statistics New Zealand figures out yesterday for the March quarter suggested supermarket sales volumes slumped a highly unusual 7.4 per cent, but supermarkets and some economists question the figures.
Statistics New Zealand figures out yesterday showed total sales volumes down 1.5 per cent in the March quarter. But in the worst dive for 17 years, core retail sales fell 2.5 per cent, excluding cars and fuel. That was heavily influenced by the drop in supermarket sales, as well as a retreat in accommodation, which was expected after the Rugby World Cup.
Excluding the apparent supermarket slump, total March-quarter sales volumes would have actually risen by about 0.5 per cent, indicating the underlying pace of spending is holding up well, according to ASB Bank economists. ASB questioned the fall in supermarket sales figures, typically the largest and most stable part of the retail trade survey. Sales volumes in supermarkets and grocery stores have been steadily improving in the past couple of years, so a big drop was surprising, ASB said.
Foodstuffs said the Statistics NZ figures did not marry with its national figures, which showed a ‘‘small uplift’’ in sales in the March quarter, not a large fall. Foodstuffs questioned the way Statistics NZ gathered its figures.
Meanwhile, Countdown, with 160 supermarkets, reported sales of $1.4 billion in its third quarter, up 2.9 per cent on the previous year. New Zealand managing director Dave Chambers said the quarter had shown ‘‘pleasing sales growth’’ and it was gaining market share.
Retailers Association chief executive John Albertson said the 2.5 per cent fall in core retail sales was ‘‘absolutely’’ a hangover from higher spending during the Rugby World Cup.
‘‘What we have now is a return to more normal trading conditions,’’ Albertson said, with the March quarter this year up about 3.5 per cent on the same quarter a year ago.’’