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Home Business

Black Friday sales slump by 10 percent

November 26, 2023
in Business
Black Friday sales slump by 10 percent
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Black Friday sales Sylvia park mall in Auckland

Shoppers hit the malls this year for Black Friday, but sales were not as high as in previous years.
Photo: RNZ / Marika Khabazi

Retail NZ says Black Friday sales were down by about 10 percent this year.

Carolyn Young, the chief executive of the advocacy group, said the American tradition of Black Friday sales, held the day after Thanksgiving, has become increasingly important for retailers and shoppers in New Zealand over the past five years.

She said this year without exception sales were trending down.

She said stores she spoke to told her this year there were plenty of shoppers out and about, but they were buying less.

“I’ve spoke to retailers across a broad range of sectors including electrical goods, household items, jewellery, fashion, right across the board, and I’ve had very similar comments from everyone.

“So most people have seen a downturn of sales of around 10 percent but there have been a lot of people out around the stores.”

She said many of the large retailers started their sales earlier, which may have impacted on smaller retailers who have to compete against the lower prices.

Young said retailers were not expecting a bumper day, but were pleasantly surprised at how many shoppers were around.

“I think the value in your wallet has declined between this time last year and this year.

“Increasing interest rates have led to increased rents and mortgages for people, which means there is less money to go around for discretionary spending.

“So it’s really starting to feel the pinch into consumers’ wallets.”

Black Friday sales Sylvia park mall in Auckland

Stores have been advertising sales for several weeks.
Photo: RNZ / Marika Khabazi

She said she recommends people support New Zealand-based companies rather than overseas online stores.

“You have a much higher level of comfort around cyber fraud,” said Young, “and making sure what you are purchasing is what you get.

“You are covered by New Zealand legislation and there are processes you can put in place if things go wrong.

“We just really encourage people to kick-start the New Zealand economy by continuing to shop within New Zealand.”

A recent 2023 Black Friday Report from price comparison website PriceSpy – released before this year’s sales – found that despite the cost-of-living crisis, New Zealanders had supposedly planned to spend 10 percent more on Black Friday than last year.

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Copyright for syndicated content belongs to the linked Source : RNZ – https://www.rnz.co.nz/news/business/503306/black-friday-sales-slump-by-10-percent-retail-nz

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