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Online shopping still doesn’t dominate, economists say.
More than 6000 transactions were processed in a minute at the peak of Boxing Day spending, but overall spending was down on last year.
Worldline data, which represents transactions at retailers across the country, showed there was $98.3 million in transactions on December 26, down 0.6% on 2022 and up 2.4% compared to 2019, despite a strong increase in prices since that time.
The peak minute fell at 12.34pm, but at 6074 payments, activity was slower than the Friday before Christmas, when there were 10,805 transactions in the peak minute.
Worldline NZ’s chief of sales Bruce Proffit said, while the drop in spending this Boxing Day would be disappointing for retailers, it was line with the overall trends seen over the past six months.
Boxing Day spending growth was highest in Otago, up 9.4% year-on-year and dropped the most in Wellington, down 10.8%.
Comparison site PriceMe.co.nz said it had an 11% increase in site visitors compared to Black Friday.
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Made is home to a diverse hub of bustling retailers, foodies, creators and artisan vendors.
Chief executive Gavin Male said while there was slightly lower overall traffic on Boxing Day itself, the lead-up to Boxing Day included a substantial surge in online activity, particularly on Christmas Eve and Christmas Day. This shift indicates a strategic move by online retailers to kick off their Boxing Day sales early.
Infometrics chief executive Brad Olsen said it was likely that online shopping followed a similar pattern to in-store shopping.
“I was in Wellington CBD on Boxing Day and there were heaps of people around, including two cruise ships, and spending in Wellington was still down nearly 11%.
“The boost in visitor traffic to PriceMe.co.nz on Boxing Day compared to Black Friday definitely shows that people are keen to scope out deals, and given how spending seems to have gone, you’ve got to wonder if people were having a look at the deals first to assess whether it was worth shopping, or if they would keep their wallets closed. PriceMe.co.nz’s point around stronger online activity in the lead up to Boxing Day on Christmas Eve and Christmas Day highlights how hard retailers will have to work to convince households to part with their cash into 2024 – I expect more people will be out looking for deals and comparing price options, given they have a more limited pool of money to spend as interest rates and mortgage repayments have risen.
“PriceMe.co.nz’s traffic was still down compared to last Boxing Day, which is still consistent with the lower level of activity this Boxing Day in terms of spending and other indicators.”
He said online spending was now a larger share of spending than before the pandemic but was not dominant.
“Over the first couple of months of 2023, online spend was around 16% of total spend, and that proportion is similar to what was seen in November 2023. No one has reported actual online spending data for Black Friday, Christmas Eve, or Boxing Day that I’ve seen, but based on the usual spending trends, I don’t think it’s likely that online spending activity is going in the opposite direction to physical spend and would tell a different spending story.”
