The magnitude of the pandemic hasn’t taken the cheer out of the summer holiday season, with more than half of New Zealanders planning to spend as much this year as they did last year.
A survey of 777 consumers by professional services firm Accenture indicates nearly one-in-six were feeling more optimistic and will spend more this year, about a third were planning to cut back, and just over half plan to hold their spending at last year’s level.
Accenture New Zealand managing director Ben Morgan said overall, Kiwis’ spending intentions could best be described as cautiously optimistic.
“That likely reflects how Kiwis are feeling at the moment in terms of the nation’s economic prospects.”
Despite a somewhat conservative stance, New Zealanders were more optimistic than consumers in some large economies, with 41 percent of United States and 36 percent of British shoppers planning to spend less.
However, the pandemic had changed the way people shop, with one-in-five unwilling to venture in-store, opting instead for home delivery – although 79 percent were still prepared to visit shops.
Sixty three percent planned to shop online, with a quarter using a mobile device to make their purchases.
The research also found a third would be willing to pick-up in-store if they were given an incentive to do so.
“For retailers, that means revaluating their online presence and supply chains to make sure they can meet this change in demand,” Morgan said.
“To retain customers, local retailers should also invest in good technological solutions for inventory management and order fulfilment or risk having their customers turn to competitors.”
People were planning to spend an average of $562 this holiday season on gifts and groceries, with parents still the biggest spenders ($679), followed by Gen Z ($631) and males ($635), while women trail far behind ($503), and singles the most abstemious (around $420-440), according to the survey.
Source: RNZ News – www.rnz.co.nz
