Press release 8/8/24. Even Faster Retailing Growth

Consumer spending grew much faster than the population. In 2024 it reached $117m, 22% ahead of 2023 ($96m), ad 66% ahead of 2019 ($55m).  Over the five years to 2023 (the latest data) the June population grew by 40%, well behind 138% growth in spending over the five years to March 2024.

The main reason for this difference is increased spending per head. Additional resident numbers accounted for $11.2m of the growth and higher spending per person accounted for $28m. 

The reasons for higher spending per head include:

·       Average household incomes rising as more working people moved into an area long dominated by a largely retired population;

·       Increased construction, trade, and business-related spending;

·       The introduction of two large format stores – Bunnings and New World – enabling residents to meet more of their spending needs locally rather than elsewhere (reducing spending “leakage”); and

·       The additional retail capacity encouraging people from a wider catchment to shop in Mangawhai (from elsewhere in Kaipara, the southern part of Whangarei District, and the northern part of Auckland).

At the same time, visitor spending grew by $20m (69%) to reach $50m in 2024, accounting for 34% of total retail growth, compared with 19% due to the gain in population and 47% due to higher spending per resident.