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Retail spending in Greater Christchurch climbed 20 per cent in the first week of Alert Level 3, new figures show.
After the crippling restrictions of the level 4 lockdown, the easing of constraints that allowed some businesses to open led to a surge in spending in the hospitality and accommodation sectors, as well as in home and recreational, retail and fuel and automotive sales.
But the amount of money passing through tills in the week ending May 3 was still down 40 per cent on the same period last year, figures from economic development agency ChristchurchNZ show.
John Kirk-Anderson / The-Press
Alert Level 2 will be a welcome relief for Christchurch’s hospitality businesses, but many will have to put specific measures in place to be able to operate.
They also reveal the devastation wrought by the swingeing rules imposed to contain the coronavirus pandemic – takings at clothing, footwear and department stores were down 96 per cent on the same week 12 months ago, while hospitality took a 71.5 per cent hit.
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* Coronavirus: Dairies among biggest strugglers as NZ returns to Covid-19 Alert Level 3
* Coronavirus: Level 3 won’t be the magic tonic for retailers struggling under Covid-19 restrictions
* Coronavirus: Retail sales tanking in Christchurch, but supermarket sales stay up
Retail card spending fell more than $ 2.6 billion, or nearly 50 per cent, across the country during lockdown, according to Statistics New Zealand.
The nation went into level 4 lockdown at midnight on March 25, and moved to level 3 on April 28.
At level 4, only businesses deemed essential by the Government were allowed to open, meaning most retail stores other than supermarkets and pharmacies were closed for more than a month.
It comes as ChristchurchNZ issued a plea for people to spend locally as it unveiled plans to reboot the region’s economy.
Chief executive Joanna Norris said the level 3 restrictions meant growth in retail spending was “somewhat muted” and that more would be needed – and is expected – under level 2 to support local businesses and protect jobs in Christchurch.
“Consumer spending by individuals and businesses accounts for 60 per cent of economic activity – how each person spends their income makes a huge difference to keeping local businesses afloat and people in jobs.
Alden Williams / Stuff
An empty Cashel St in Christchurch during the coronavirus lockdown, an image mirrored up and down the country.
“The spend trickles through the community – to workers, suppliers and producers and ultimately benefits us all.”
ChristchurchNZ figures show:
– Retail spending in Greater Christchurch for the week to May 3 was down 40.8 per cent on the same period last year, a 10 percentage point (20 per cent rise) from the 50.7 per cent of the week prior, the last of level 4;
– Point-of-sale spending was up across most retail sectors on the previous week, hospitality and accommodation rising 25.9 percentage points (pp), home and recreational retail up 20.5pp and fuel and automotive sales up 11.4pp; only clothing, footwear and department store sales were down, at 3.7pp lower than the week before;
– Spending in supermarkets remained strong – despite a slight decrease in the week of moving to level 3 alert, sales were still 11.4 per cent up on the same period last year;
– Clothing and department store sales (96 per cent), hospitality and accommodation (71 per cent), home and recreational retail (75 per cent), international spending (73.1 per cent) and fuel and automotive (56.5 per cent) were all down in the week to May 3 on 12 months prior, only food, liquor and pharmacy spending experiencing growth (11.4 per cent);
– Spending as a whole nationwide was down 42.5 per cent that week on a year earlier.
ChristchurchNZ last week outlined a region-wide strategy to rejuvenate Canterbury’s economy both immediately and in the medium and long-term in the wake of the coronavirus pandemic.
“Consumer spending is the first and perhaps most powerful early tool we have to support businesses and keep jobs,” Norris said.
“But we’re looking at a suite of actions that will make a real difference, including creating a sustainable visitor and education economy, supporting people to move from unemployment into training and jobs and creating a distinctive city identity with a smart, resilient and equitable economy. ”
