Food and beverage spending the main contributor for North Shore retail sales.
North Shore retail sales continue to rise, and food and beverage spending is one of Auckland’s main contributors.
Colliers International’s research reveals that retail sales in New Zealand rose 1.4% ($309 million) in the June 2017 quarter.
Accommodation and food and beverage services had the largest increases in retail sales nationally; 4.9% ($117 million) and 4.6% ($47 million) respectively.
On a year to year comparison, all regions have experienced an increase since June 2015. Waikato had the strongest growth at 7.1%, followed by Auckland at 6.3%, Wellington at 6.2% and Christchurch at 2.4%.
Annual international visitor arrivals hit 3.68 million for the September 2017 year, up to 9 per cent compared to a year ago.
These figures are due to, in part, the influx of visitors for the World Masters Games and the Lions rugby tour throughout June 2017. These helped push the value of retail sales up 6.4% from a year ago.
Looking at the North Shore in particular, of the country’s total retail property sales for the period Jan 1 to October 31, the North Shore accounted for 16% of the country’s sales.
Hurstmere road, Takapuna, continues to be a retail hub of the North Shore, and is representative of the country’s rise in food and beverage spending.
Outside of increases in visitor numbers contributing to the sector’s overall spending, North Shore spending has occurred off the back of increased residential developments in surrounding areas such as Albany.
While most new North Shore residents are living outside of Takapuna, they are frequenting food and beverage haunts on buzzing Hurstmere road.
Similarly, an increasing number of office workers in Takapuna will also continue to spend in this sector with new proposed commercial precincts such as Smales Farm.
Bricks and mortar retail stores are in decline as online stores continue to put pressure on local retailers seen in the recent closure of retailer Topshop in the Auckland CBD.
This will only continue as e-commerce giant Amazon.com enters the Australian market next year and it’s likely to expand to New Zealand.
Though despite the pressure on local retailers, it’s not all bad news.
There are discussions that retailers will have ‘bricks and clicks’ strategies and still hold a physical retail footprint though these stores will be smaller and there will be a lower number.
Based on previous years, retail sales across all regions are expected to see a boost of around 12% to 15% around the Christmas period.
