World Cup spending 'kick-off' welcome
A predicted Rugby World Cup spending boost is expected to be a welcome relief for retailers.
According to electronic transaction company Paymark, trading conditions across most sectors have been soft for the last couple of months.
The value of transactions through the Paymark network increased 3.2% (year-on-year) in July and 4.1% in August. Both of these rates, as well as the average of 3.7% for the two months, are below the 4.4% growth rate averaged in the first half of the year.
Paymark head of sales and marketing Paul Whiston, says that the figures are typical of a mixed trend that has been noticeable over the past 12 months.
“It’s been fairly flat out there with sectors experiencing highs and lows at different points throughout recent months. This pattern has come through consistently over the past year and I think it would be fair to say that few businesses have escaped the mixed spending patterns.”
Annual spending growth was above the year-to-date average in Auckland/Northland (up 7 %) during August – second only to Bay Of Plenty (+7.3 per cent).
Conversely, merchants in other regions including those experiencing slow-to-negative annual growth between August 2010 and August 2011 such as Wairarapa (down 0.3%), Canterbury (down 3.5%) and Marlborough (down 2.4 per cent), meaning they may be looking for a kick-start from the World Cup.