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Summary
- New Zealand witnessed 2.2% fall from the previous year in Boxing Day spending.
- In comparison to Boxing Day, Christmas spending was noted at NZ$75M.
- Delayed cargos and supply chain factors could be the reason for drop in Boxing Day sales.
The holiday season usually brings big spending from the Kiwis and Boxing Day is one of the shopping events to find the best bargains, with supermarkets flooded with shoppers.
Even though the Kiwis spent less than last year on the Boxing Day sales, it was only marginally down considering the situation all over due to COVID-19. The expenditure witnessed during this year’s Boxing Day was estimated to be NZ$62M, as per several media reports.
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Possible reasons for the decline in Boxing Day sales
One reason for the drop in Boxing Day sales this year could be attributed to Coronavirus. The businesses across the globe suffered and saw disruptions in the supply chains, but more than that it could be that people were a little cautious about stepping out into the crowded places. Also, the new mutant strain of the virus could have scared people from moving out of their houses.
It was further revealed that the marginal decline in Boxing Day spending this year could also be because of the next day being a Sunday. However, even a day after boxing day the sales did not pick up. In fact, the sales witnessed a decline of above 23.6% from the previous year.
The strong pre-Christmas spending could also be a reason for the decline in sale afterwards. The two days prior to Christmas witnessed a 10.4% rise as compared to the same time last year.
The 5-week expenditure to 27th December
No doubt, the retail spending for Boxing Day in 2020 went down by 2.2% from last year but these figures do not include hospitality, food, and alcohol, which are a few things that people tend to spend the most on around the holidays.
The amount spent on Christmas this year went to NZ$75M as compared to NZ$70 M last year.
In the span of five weeks up till the 27th of December, sales seem to have gone up by 5%. This came after a strong start during the Black Friday sales leading up to Cyber Monday.
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Awaited discounts and delayed cargoes
It was further inferred that the decline in Boxing Day spending could also be because of people waiting for discounts.
The sales in the South Island were the worst hit, with Marlborough witnessing a 17.8% downfall. The West Coast witnessed a decline of 16.4%. On the other hand, Auckland has witnessed a growth of 0.7% in sales as compared to the same time last year.
COVID-19 has also caused supply chain issues in the country. With cargos not reaching on time and the reduction of air freight, stores were not stocked to their usual capacity this year. This could have led to the delayed spending. Further, people looking for bargains might have been waiting for better deals and better stock of products.
