The holiday season is known for clearing shelves of the latest toys and technology, but how did it perform in 2019?
First and foremost, Kiwis spent too much on gifts, but their expenditure was still lower than expected. Opinion Compare’s national survey showed the average Christmas spend was $769, which has resulted in 26 percent of buyers experiencing post-Christmas debt anxiety. There were a variety of payment methods used to make these purchases happening including 24 percent of people using a pay later service.
The survey showed that 10 percent of customers took out personal loans and 5 percent borrowed money to afford the gifts they purchased. It also revealed that the average post-Christmas debt estimation is $552 and 19 percent of people plan to work more hours to pay it off.
Gavin Male, Managing Director, said “This builds on research we carried out prior to Christmas showing that it can be a stressful time of the year and the repercussions are evident in this research with anxiety about post-Christmas debt. The good news is that there’s determination to get rid of the debt by being more frugal throughout the year via building budgets or taking systematic financial approaches to recover their debt.”
For retailers, it was a successful two months at the end of 2019. November surpassed December for money spent by 0.9 percent, while spending in the November-December period was up 4.1 percent from 2018.
Black Friday boosted sales for New Zealand retailers as the North American tradition catches on more and more every year. Online retailer, Mighty Ape now has a more successful day of sales on Black Friday than boxing day. This is forecasting some big changes in consumer spending during the Holiday months. As we move into having extra sales events in November, consumers are spending more and spending earlier.