Christmas will be merrier for retailers than the last

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Sun, 20 Dec 2009 5:25p.m.

Christmas could be a lot merrier for retailers, compared to last year

Christmas could be a lot merrier for retailers, compared to last year

By Rachel Morton

The figures are in and it seems this Christmas will be merrier for retailers than the last.

Spending is up 5 percent on this time last year and sales have been so good, those waiting for a Boxing Day bargain might miss out.

Five days out from Christmas and shoppers are seeing the kinds of sales usually reserved for Boxing Day.

Figures released to 3 News by Paymark – who process three quarters of all Eftpos transactions – show consumers have spent 5 percent more this December to date, than the last.

“Last year we were heading into recession and everyone was pretty tight with their purse strings, we believe this year is going to be quite a lot better,” said the Retailers Association.

$165 million went through the Paymark system yesterday - $3 million more than the Saturday before Christmas last year.

Eftpos transactions are up 6.2 percent on last December.

Yesterday, at peak shopping time, there were 103 transactions per second – but one retailer told 3 News while transactions are up, it has not affected his bottom line.

The manager of a Toy World ordered most of his Christmas stock in March – buying cheaper merchandise to reflect the market – so while more people are swiping their cards, they are not spending as much.

“That's also been reflected in what we have available from the suppliers as well, the stock we're stocking has lower retail price points,” says Toy World.

“Last year the big item was a $500 Code of the Dinosaur, this year it's a $100 Lulu the Cat.”

The Retailers Association believes many retailers would have ordered stock early in the year and they would not have been expecting sales to be as good as they are.

“This year we actually bought in the middle of the recession, and my suspicion is that stock levels will be down, so there may not be quite the level on Boxing Day. I'd buy now.”

So sales may be as good as it gets as retailers try to boost sales at their most critical time of year.

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Comments

24 Dec 2009 02:46p.m.

Warren Matthews wrote:

How much of this 'Spending is up 5 percent', is as a result of nothing more than inflation? I went shopping and there is just so much 'Made in China' everywhere, every time I pulled my wallet out I just couldn't go through with the transaction. Next year maybe ill try find some NZ struggling hippie ceramic artist or something.