Retailers enjoy strong spending as winter hits
Tuesday 12 June 2012, 3:03PM
By Eleven \ PR
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Spending across the Paymark network in May was strong, with the latest figures showing nationwide annual growth at 5.8 per cent for the month – the highest annual growth rate of 2012.
Leading the way this month was the retail-building sector, with plumbing retailers, wholesale building stores and floor covering suppliers experiencing growth of 17.7 per cent, 16.4 per cent and 13.8 per cent respectively.
Other sectors to enjoy double-digit annual growth included dentists up 14.8 per cent, automotive repairs up 13.5 per cent and clothing retailers also up 10.7 per cent.
This month’s high spending growth rate was partially due to a favourable fall of shopping days in comparison to May last year. However, irrespective of this May having one less Sunday and Monday than last year, spending was still stronger than usual for this time of the year.
Paymark Head of Sales and Marketing, Paul Whiston, says the underlying trend of increased spending can be illustrated by looking at the seasonally adjusted spending figure for May.
“Spending through the Paymark network in May, excluding fuel, rose a seasonally adjusted 4.2 per cent from May 2011 to 2012, which shows us irrespective of the favourable fall in shopping days spending was better than we’d normally expect as winter hits.
“In particular, spending is running better than usual amongst merchants that have some association with the building cycle and in terms of regions Nelson and Palmerston North stood out this month. Retailers on the Paymark network experienced non-seasonally adjusted growth of 8.4 per cent and 8.3 per cent in Nelson and Palmerston North respectively,” he adds.
Regions that didn’t benefit as much from this month’s spending increase were Wellington and Wairarapa which registered growth of just 2.3 per cent and 2.9 per cent respectively.
Nationwide, during May the year-on-year growth in credit card transactions (+6.3%) continued to outstrip the growth of debit card usage (+4.5%) and the number of transactions increased by 4.9 per cent.
For more information or to arrange an interview with a Paymark spokesperson please contact Kelly Bennett –021 038 035 or Louisa Jones – 021 299 2628.
| PAYMARK Regional Data (May 2012 versus same month 2011) | |||||||
| Volume (million transactions) | Value of spending ($millions) | ||||||
| Region | Last Year | Current Year | Volume Difference |
Last Year |
Current Year | Value Difference | |
| Auckland/Northland | 29.76 | 31.30 | 5.2% | $1,462.2 | $1,553.6 | 6.3% | |
| Waikato | 5.44 | 5.74 | 5.6% | $259.8 | $275.6 | 6.1% | |
| BOP | 4.55 | 4.78 | 5.0% | $225.4 | $240.3 | 6.6% | |
| Gisborne | 0.69 | 0.72 | 5.2% | $32.1 | $33.9 | 5.7% | |
| Taranaki/Taupo | 1.78 | 1.89 | 6.2% | $84.5 | $89.9 | 6.4% | |
| Hawkes Bay | 2.05 | 2.13 | 4.2% | $97.5 | $102.5 | 5.2% | |
| Wanganui | 0.82 | 0.87 | 5.0% | $35.8 | $38.2 | 6.7% | |
| Palmerston North | 2.40 | 2.53 | 5.4% | $120.2 | $130.1 | 8.3% | |
| Wairarapa | 0.69 | 0.71 | 4.0% | $32.9 | $33.9 | 2.9% | |
| Wellington | 8.50 | 8.74 | 2.8% | $384.1 | $392.9 | 2.3% | |
| Nelson | 1.36 | 1.44 | 5.7% | $67.4 | $73.1 | 8.4% | |
| Marlborough | 0.74 | 0.77 | 3.4% | $36.9 | $38.6 | 4.6% | |
| West Coast | 0.46 | 0.49 | 5.3% | $25.5 | $27.2 | 6.5% | |
| Canterbury | 8.11 | 8.59 | 5.9% | $400.4 | $426.8 | 6.6% | |
| South Canterbury | 1.12 | 1.18 | 5.5% | $60.8 | $65.1 | 7.2% | |
| Otago | 3.93 | 4.09 | 4.1% | $182.4 | $191.8 | 5.2% | |
| Southland | 1.64 | 1.72 | 4.9% | $85.8 | $90.8 | 5.8% | |
| New Zealand | 74.06 | 77.70 | 4.9% | $3,628.7 | $3,839.7 | 5.8% | |
| (growth rate this time last year) | 2.4% | 3.8% | |||||
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About Paymark
In November 2009, Paymark celebrated a significant business, retail, and economic milestone with the celebration of its 20th birthday. Since its inception in 1989 when three banks came together to form Electronic Transaction Services Limited (now known as Paymark Limited), Paymark has grown to become an integral part of New Zealand’s economic landscape with arguably the best EFTPOS system in the world.
Quick facts:
- By March 1990 volumes through the network exceeded 1 million transactions a month
- 1994 the company increased its computer processing power to accommodate volumes exceeding 10 million transactions a month
- 28 August 1996, Paymark makes history by installing an off-shore EFTPOS terminal at a general store, Scott Base, Antarctica
- In 1998 Paymark passed another milestone as the 1 billionth EFTPOS transaction was processed
- More than 74,000 merchants and 116,000 terminals are currently connected to the network that is now 3DES and EMV compliant. Today, the Paymark network processes over 75% of all electronic transactions in the New Zealand retail market on behalf of more than 50 card issuers and acquirers.