Buying local could be cheaper this Christmas
SHOPPERS may be better off buying locally this Christmas, as a softer dollar pushes up prices for online consumers.
The New Zealand dollar has fallen 13 per cent against the United States dollar this year, hitting shoppers on overseas websites in the pocket almost immediately.
But while local retailers are also expected to raise their prices on imported goods, Retail New Zealand spokesman Greg Harford said they were unlikely to do so before Christmas.
This was partly because some stock had been ordered and paid for before the dollar softened significantly, and partly because of cutthroat Christmas competition.
‘‘There’s lots of pop-up shops happening and so that will probably keep a lid on prices,’’ said Harford.
‘‘We’re pretty optimistic that it’s going to be a positive Christmas.’’
Toyworld Wellington franchise owner Phillip Bramley confirmed that the impact of the softer dollar would not be felt in his store until after Christmas.
‘‘The majority of our toy purchases, particularly our international purchases, were done back in March. This Christmas will be fine, it’s the stuff that you’re seeing pricing now which will go through to the New Year, which will be where you’ll start to see any significant movement.’’
And with recent indications of a pick-up in spending, the signs were positive for a good Christmas, he said.
‘‘We’ve traded quite nicely through winter. Certainly the last three months have been ahead of last year.’’
Recent retail data shows people have been consistently spending more in recent months, particularly in hospitality, homeware, appliances and hardware.
Michael Stechman of retail consultancy Marketview said hardware had been going pretty well for the last two years, ‘‘particularly as interest rates have come down and people are trying to get in on the housing market, do up their houses, that kind of thing’’.
Camping gear had also been ‘‘huge’’, with spending in the last month 16 per cent higher than 12 months ago.
Even the lacklustre clothing category had turned upwards in the last two weeks.
Retail NZ is forecasting $17.1 billion in core retail spending for October to December, up from $16.25b last year. But whether Christmas shoppers will leave it to the last minute, as they did last year, is too hard to call, analysts say.