In August we saw domestic clothing and footwear up 47% on August 2019. For the same period, domestic department and variety spend was up 66% and domestic homewares spend up 51%. Not surprising, August’s big winner was domestic food and grocery spending, up 62%.
Further fuelling growth for domestic online retailers is the continued preference to shop local with 71% of online shopping so far this year with domestic retailers. This is 11% up on the previous year. However, there are recent signs, including during August, that international online spending is on the rise as Kiwis look for lower prices and more product options. We’ll keep an eye on this trend in the months ahead.
Online sales have remained strong all year and we know traditionally they ramp up from Black Friday / Cyber Monday (in late November), through Christmas, and well into the new year. With COVID-19, higher unemployment, less discretionary spend, the continued closure of our borders and the onset of a ‘long and deep’ recession, will ‘peak season’ reach the levels it has in recent years?
Next month we’ll consider this question further and help retailers prepare for peak.