Analysis: Regional Spotlight

While all regions have experienced growth in online spending, not all are growing at the same rate. Somewhat surprisingly, it’s the regional areas that are dominating growth with Northland and Taranaki the best performers, supported by double-digit growth in Gisborne and the Hawkes Bay. At the other end of the spectrum, we’re seeing slower, but steady, growth across all regions in the South Island.


Northland

44% increase in online spend in the last 12-months compared to the previous 12-months. This is driven by a 30% increase in transactions and 8% increase in basket size.


The key drivers of growth have been:

64
%
increased Buy Now
Pay Later Spend
$
105
Basket size (up 8%)
12
5
More customers
shopping online
48
%
Growth in Homewares,
Appliances & Electronics spend
39
%
Growth in Food,
Groceries & Liquor spend
23
%
Growth in
Marketplaces spend
Taranaki

54% increase in online spend in the last 12-months compared to the previous 12-months. This is spearheaded by a 36% increase in transactions and 9% increase in basket size.


The key drivers of growth have been:

98
%
Increased Homewares,
Appliances & Electronics spend
54
%
Increased Buy Now
Pay Later Spend
$
109
Basket size (up 9%)
49
%
Increased Food,
Groceries & Liquor spend
-3
%
Decreased spend in Recreation,
Entertainment, Books etc
13
%
More customers
shopping online
The South Island

In the last 12-months, compared to the previous 12-months, online spending in the South Island has  increased by a steady 9%. The West Coast and Nelson/Marlborough regions lead the way, with slightly less spectacular growth numbers the further south you go.

Even before the events of 2020, we saw the South Island’s adoption of online shopping lag that of the North Island. There isn’t one obvious driver for this but a variety of factors coming together. These could include demographics (fewer people, geographic spread, more rural); shopping preferences such as buying from local producers and face-to-face interaction; the availability of options; and infrastructure (less businesses that offer online options, longer shopping distances). 
 


Last 12-months by region (compared to previous 12-months):

22
%
West Coast
9
%
Canterbury
6
%
Otago
7
%
Southland
12
%
Tasman
19
%
Nelson/Marlborough

The data used for this eCommerce Spotlight is card transactional data supplied by Datamine

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