Sharing what we know so you can be in the know

New look Father’s Day caps off mixed bag for August spending

Auckland, Thursday 8 September 2016

Father’s Day gifts appear to have changed somewhat over the years, if this year’s spending patterns on the Paymark network are anything to go by.

Dads received the traditional books and sports equipment with both categories rising in the four days leading into Father’s Day when compared with the previous week. But spending on flowers was up – more so than car accessories which might suggest a change in the way we celebrate fatherhood.

Spending through Paymark ($m), Thu-Sun

Sector 25-28 Aug 1-4 Sep Change Change
Car accessories $4.4 $4.4 $0.0 Image of up arrow 0.30% Image of up arrow
Bookshops $4.1 $5.0 $0.9 Image of up arrow 22.50% Image of up arrow
Clothing & Apparel $21.9 $22.0 $0.1 Image of up arrow 0.50% Image of up arrow
Jewellery $3.0 $2.6 -$0.4 Image of down arrow -13.00% Image of down arrow
Beauty & Hairdressing $9.5 $9.5 $0.0 Image of up arrow 0.10% Image of up arrow
Restaurant/Café $50.1 $51.8 $1.6 Image of up arrow 3.30% Image of up arrow
Sporting goods $7.1 $8.3 $1.2 Image of up arrow 17.30% Image of up arrow
Garden shops $2.9 $3.8 $0.9 Image of up arrow 30.80% Image of up arrow
Gift shops $4.6 $5.0 $0.4 Image of up arrow 8.50% Image of up arrow
Florists $0.7 $0.8 $0.1 Image of up arrow 7.70% Image of up arrow
SUB-TOTAL $108.2 $113.0 $4.9 Image of up arrow 4.50% Image of up arrow
ALL SECTORS $624.0 $624.8 $0.8 Image of up arrow 0.10% Image of up arrow

* Large clients moving to or from Paymark within last 12 months excluded from change calculation
Figure 1: Spending within selected sectors through Paymark over recent 4-day periods

Overall, spending declined in August according to Paymark figures, once seasonal effects are taken into account. However it will take several more weeks to determine whether the spending momentum has slowed or instead whether we were simply pre-occupied with the Olympic Games or other distractions during the month.

The value of underlying spending that passed through the Paymark network decreased 0.8% in seasonally adjusted terms between July and August. Partly this was due to lower spending on fuel but there were also declines amongst other sectors.

Relative to the same month last year, underlying spending was up 4.8% across New Zealand. This is below the 7.4% rate averaged over the first six months of 2016.

A hint that the slowdown may not represent a general change in growth momentum comes from the mixed nature of the regional figures. The annual underlying spending growth rate declined in seven of the 17 regions monitored by Paymark, including the major centres. However, the annual growth rate increased in the other ten regions, including in Gisborne (spending up 9.3% Aug-to-Aug) and Bay of Plenty (+8.9%), the two fastest growing regions, and in Nelson (a slight decline at -0.3%) and West Coast (+0.6%), the slowest growing region.

A similar mixed situation emerges when looking across sectors within the month. The weekly profile of the annual underlying spending growth rate shows slow growth during the two weeks of the Olympic Games. However there were periods before the Games when annual growth has also been low recently. The pattern was not consistent across retail sectors.

Underlying TOTAL PAYMARK weekly spending through Paymark (% growth on previous year)

For example, there was slower growth amongst housing-related retailers during August but this slowdown did not correspond to the Olympic Games.

Underlying furniture, floor coverings, houseware and textile goods retailing etc weekly spending through Paymark (% growth on prev year)

Elsewhere the annual growth rate remains stong, such as amongst hospitality merchants. After the volatility during July arising from the change in school holidays dates between 2015 and 2016, the underlying spending growth rate has been strong amongst merchants providing foods and beverage services (e.g. cafes).

Food and beverage services weekly spending through Paymark (% growth pn prev year)

The end result is a slower month of August overall but inconsistent patterns across regions, sectors and time.

PAYMARK All Cards Data

Figure 2: Paymark All Cards data (August 2016 versus August 2015)

Download CSVDownload CSV

Transactions in Millions
  • Auckland/Northland
  • Waikato
  • BOP
  • Gisborne
  • Taranaki
  • Hawke's Bay
  • Wanganui
  • Palmerston North
  • Wairarapa
  • Wellington
  • Nelson
  • Marlborough
  • West Coast
  • Canterbury
  • South Canterbury
  • Otago
  • Southland

* Large clients moving to or from Paymark within last 12 months excluded from change calculation

Market Reporting

With insights that will help you be more profitable and productive, Market Reporting benchmarks your business against the broader industry in which you compete. See why it's used by firms ranging from small owner/operators right through to chains with nation-wide stores.

Sign up