Richmond retailers found shoppers wanted more for less at Christmas and they did most of their shopping during Black Friday sales.
This aligns with a shift in consumer behaviour around the country, highlighted in Worldline NZ’s latest analysis of spending through its payments network. It shows online spending increased in December and Black Friday sales now exceed that of Boxing Day sales.
Across the country, shoppers spent less in December, though Nelson Tasman had a slight increase of 1.5 per cent, reaching $106 million.
In Richmond, Crackerjack Toys co-owner Tahae Lowe says shoppers tend to wait for Black Friday sales, followed by a lull until a “short, sharp punch” before Christmas.
“Just before Christmas the spend gets later and later and this time it didn’t feel like Christmas until the last week. Then Boxing Day was okay. Nothing to write home about, but not a disaster. I wasn’t too disappointed.”
He notes there is a trend to spend less per transaction but buy more items. “It’s more affordable products – they’re buying more for less. People are being careful with their money. Families will buy a family gift for Christmas instead of individual gifts.”
Shoppers were also increasingly buying Christmas gifts online from Crackerjack Toys, and for convenience often had them gift-wrapped for collection. As a retailer, he says takings overall are going down, while the cost of doing business has “absolutely skyrocketed”.
Crackerjack Toys has a long history in Nelson, whereas its Richmond store operates as a pop-up in a former shoe shop. Tahae says they “haven’t discounted” staying long term in the town, which he notes does not attract tourists in summer like Nelson city. Domestic tourists also tend to head to Nelson rather than Richmond, which relies on locals.
“I think, in Richmond it hasn’t helped with the mall being half a mall at the moment. Because we rely on the mall so much to bring people in.”
He says the current downturn has been an interesting time for retailers and he has been through enough downturns to know this one is lasting longer, which makes it worse than the Global Financial Crisis (GFC) of 2007-2008.
“This one is tougher because it has gone on a lot longer.”
At Fashion Central, manager Honour Clarence says the Christmas shopping period was busy but not like the pre-Covid years.
“I think the cost of living is still affecting people. It has been really challenging in retail - people wanting to get the cheapest bargain. Wanting more for less. People used to come in and get a pair of pants, a top and cardy. Now they’re thinking: ‘what do I need?’ It’s more essential shopping now.”
Even with signs of economic recovery, she wonders if the spend-less mentality will change. Pensioners are the store’s “bread and butter”, and she says pension day is always busy, but the redevelopment of the nearby mall has had an effect.
“Shutting down the food court in the mall really hit us. But now the new part is helping again. Once the food court is up and running again, it will hopefully help."
At Gearshop, which has stores in Richmond and Tāhunanui, operations manager Penny Koroi says the business has had a good summer, kicked off by Black Friday sales and continuing through the season. “Maybe a little down on previous years, but good.”
