Spending in Taranaki and its Districts
Half year to July 2017
About the analysis • Quantifies: – $ Regional and District retail expenditure – Market share between Districts – Loyalty and leakage in terms of resident spending
• Methodology: – Independently undertaken by Marketview for VT. – Combination of BNZ electronic cards and activity at Paymark merchant terminals (75% retail coverage). – Includes eftpos, debit & credit cards.
• Purpose: – Provide market intelligence for retailers/business owners – Inform regional and District economic development strategies
$587.13m spent in Taranaki during half-year to June 2017 Value of monthly spend - Taranaki Jan - June 2017 $102.00 m
$100.74 m
$100.42 m $99.34 m
$100.00 m
$98.40 m $98.00 m
$97.18 m
$96.00 m $94.00 m $92.00 m
$91.04 m
$90.00 m
$88.00 m $86.00 m Jan
Feb
Mar
Apr
May
Jun
Spending within Taranaki
up 5.7% for half- year Higher than national average: 4.8% June – strongest growth Taranaki retail sales - % change on same time last year - 6 months to June 2017 12.0% 10.2% 10.0%
8.0% 6.7% 6.0%
7.0%
5.2% 4.2%
4.0%
2.0%
1.3%
0.0% Jan
Feb
Mar
Apr
May
Jun
$441.12m spent in New Plymouth District during half-year Spending up 5.3% relative to same 6-month period in 2016 January highest spend month Retail spend by month in New Plymouth District Jan- June 2017 $78.00 m $76.29 m $75.65 m
$76.00 m
$75.17 m
$74.00 m
$73.23 m $72.39 m
$72.00 m
$70.00 m $68.40 m $68.00 m
$66.00 m
$64.00 m Jan
Feb
Mar
Apr
May
Jun
$47.89m spent in Stratford District during half-year Spending up 3.7% relative to same 6-month period 20156 March busiest month – just! Retail spend by month in Stratford Jan - June 2017 $8.40 m
$8.29 m
$8.25 m $8.20 m
$8.07 m $8.00 m
$7.92 m
$7.76 m
$7.80 m $7.60 m $7.60 m $7.40 m $7.20 m Jan
Feb
Mar
Apr
May
Jun
$98.11m spent in South Taranaki District during half-year Spending up 8.9% relative to same 6-month period 2016 May - busiest month Retail spend in South Taranaki by month Jan - June 2017 $17.50 m $17.11 m
$17.02 m
$17.00 m $16.50 m
$16.48 m $16.26 m
$16.20 m
$16.00 m $15.50 m $15.04 m $15.00 m $14.50 m
$14.00 m Jan
Feb
Mar
Apr
May
Jun
South Taranaki – change in spend South Taranaki - % change in spend by month Jan – June 2107 20.0% 17.5%
18.0% 16.0% 14.0%
13.0%
12.0%
10.0% 8.6% 8.0%
6.9%
6.0% 4.0%
3.7%
Feb
Mar
4.0%
2.0% 0.0% Jan
Apr
May
Jun
District Analysis
73% spent within New Plymouth District Share of Spend Jan - June 2017
South Taranaki District, 18.9%
Stratford District, 8.3%
New Plymouth District, 72.7%
Spend relative to same time previous year
Snapshot Percentage change relative to same time last year Jan - June 2017 10
8.9
9 8 7 6
5.7
5.3
4.8
5
3.7
4 3 2 1 0
New Plymouth District
Stratford District
South Taranaki District
Taranaki
New Zealand
Jan- June 2017 2016
13.62m Taranaki transactions 4.9% increase from 2016 Nationally, transactions up 5.1% % Change in Transactions: 6 months ending June 2017 relative to same time previous year 8.0%
7.6%
7.0%
6.0% 5.0%
4.5%
4.0% 3.0% 3.0% 2.0% 1.0% 0.0% New Plymouth District
Stratford District
South Taranaki District
$43.10 – Taranaki’s average transaction value Highest average transaction value in New Plymouth District = $44.53
Average transaction value $ $46.00 $44.53 $44.00 $42.17
$42.00 $40.00 $38.03 $38.00
$36.00
$34.00 New Plymouth District
Stratford District
South Taranaki District
Average transaction value Increased in all Taranaki Districts (region = 0.8%) Percentage change in average transaction value 1.4%
1.2%
1.2%
1.0%
0.8%
0.8%
0.7%
0.6%
0.4%
0.2%
0.0%
New Plymouth District
Stratford District
South Taranaki District
What did people spend money on? Analysis by Taranaki District
NPD: Biggest Spend: food (33%) Biggest growth: takeaways (12%); Biggest spend New Plymouth District - Percentage of spend by category 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
New Plymouth District - percentage change by category Jan - June 2017 v same time last year 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%
Stratford: Biggest Spend: food (46%) + Fuel (25%) Biggest growth: Hardware/homeware; (16%) Biggest spend Stratford District - Percentage of Spend by category 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%
Biggest growth Stratford District - Change in spend by category 20.0% 10.0% 0.0% -10.0% -20.0% -30.0%
South Taranaki: Biggest Spend: Food (43%)
Biggest growth: Apparel (43%) Biggest spend
South Taranaki - Percentage of spend by category
50.0% 40.0% 30.0% 20.0% 10.0% 0.0%
Biggest growth South Taranaki - change in spend by category 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0%
Origin of Customers’ Spending at merchants in the Taranaki region
“Who’s spending in our region and Districts?”
The importance of
Local customers 88% of spending 89% of transactions conducted in the Taranaki region for the Jan-June 2017 half year were from Taranaki ‘cardholders’
78% of expenditure within the NPD was from NPD resident ‘card holders’* Note: In terms of the balance of NPD spending - more $ from ‘rest of NZ’ + international (13%) than ‘rest of Taranaki region’ (9%). Origin of Customer Spend in New Plymouth District International, 2% Rest of NZ, 11.30% South Taranaki, 4.60%
Stratford, 4%
NPD, 78.10%
South Taranaki District – more reliant on
South Taranaki resident spend
(82%) Origin of Customer Spend in South Taranaki International, 0.80%
NPD, 3.20% Stratford, 5.40%
Rest of NZ,‌
South Taranaki, 82%
33% of expenditure in Stratford
was
from non-Stratford ‘card holders’* International, Origin of customer spending in Stratford District 1.50% Rest of NZ, NPD, 10.10% 8.20% South Taranaki, 13.70%
Stratford, 66.50%
• Stratford is quite different to NPD and STD. • “Rest of region” = 23.8% of spending in Stratford. • Higher dependence on other parts of region for spending at Stratford merchants
Inflows and outflows of expenditure
‘visitor’ spend for New Plymouth District Spend patterns within New Plymouth District by non-NPD residents = $97m $25.000 m
$20.000 m
$15.000 m
$10.000 m
$5.000 m
$0.000 m Jan
Feb
Taranaki/Non-NPD customers
Mar
Apr
NZ customers
May
International customers
Jun
visitor spend in South Taranaki Spend Patters within South Taranaki by non-South Taranaki residents =$17.6m $3.500 m
$3.000 m
$2.500 m
$2.000 m
$1.500 m
$1.000 m
$0.500 m
$0.000 m Jan
Feb
Mar
Apr
May
International spend wihtin South Taranaki Spend within the South Taranaki District from NZ'ers Spend within STD by Taranaki people (non South Taranaki)
Jun
‘visitor’ spend in Stratford Spend Patterns within Stratford by non-Stratford residents = $16m $3.500 m
$3.000 m
$2.500 m
$2.000 m
$1.500 m
$1.000 m
$0.500 m
$0.000 m Jan
Feb
Local Region
Mar
Rest of NZ
Apr
International
May
Jun
Leakage analysis:
When local residents don’t spend at their District merchants‌. How much is spent elsewhere and where do they spend it?
New Plymouth District Estimated resident spending outflow for half-year ending June 2017: $57m New Plymouth District residents - spend outside the District $14.00 m
$12.00 m
$10.00 m
Primary destination for spending by NPD residents, when not spending within NPD, is outside the region.
$8.00 m
$6.00 m
$4.00 m
$2.00 m
$0.00 m Jan
Feb
Mar
Spent in other parts of Taranaki
Apr
May
Jun
Spent outisde Taranaki region
South Taranaki District Estimated resident spending outflow for half year June 2017: $47m
Spend outside the South Taranaki District by South Taranaki residents $9.00 m $8.00 m $7.00 m $6.00 m $5.00 m $4.00 m $3.00 m $2.00 m $1.00 m $0.00 m Jan
Feb
Mar
Spend outside District but within region
Apr
May
Jun
Spend in other parts of NZ
Primary destination for spending by South Taranaki residents, when not spending within their District, is still within Taranaki Region.
Stratford District Estimated resident spending outflow for half-year ending June 2017: $31m
Stratford District Residents - Spend Outside the District $7.00 m
Majority of spend outside District is still within Taranaki Region
$6.00 m
$5.00 m
$4.00 m
$3.00 m
$2.00 m
$1.00 m
$0.00 m Jan
Feb Spend in other parts of Taranaki
Mar
Apr
May
Spend outside the region - in other parts of NZ
Jun
The loyalty factor • Loyalty ratings • What types of products do residents tend to purchase within their own District’s? • What not?
New Plymouth District residents
Loyalty rating: 85.7%* Highest for hardware/homeware & food; lowest for accommodation New Plymouth District residents - spend loyalty June 2017 half year 120.0%
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
*Completed card purchase within own District
New Plymouth District residents
0.5% overall increase in Loyalty from same time last year New Plymouth District - change in loyalty June 2017 half year 7.0% 6.0% 5.0% 4.0%
3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0%
South Taranaki residents
Loyalty rating: 63.4%* Highest for food and fuel; lowest for apparel; accommodation South Taranaki residents - loyalty rank by category 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%
*Completed card purchase within own District
South Taranaki residents: 1.1% change in Loyalty from same time last year South Taranaki residents - change in loyalty - 6 months ending June 2017 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0%
-3.0%
Stratford residents:
Loyalty rating: 50.4% Highest for food and fuel; lowest for apparel Stratford Loyalty Ranking 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%
Stratford residents: -0.9% decrease in Loyalty Stratford residents - change in loyalty 6 months ending June 2017 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% -10.0%
-12.0% -14.0%
In a nutshell • Total spend (Jan June 2017): $587m. • Market share: 75% NPD; 17% South Taranaki; 8% Stratford • Spend up 5.7% from same time last year. Biggest $ increase in South Taranaki (8.9%).
• Transactions 4.9% up. South Taranaki District led. • Average transaction value: $43.10 – Highest in New Plymouth District ($44.53) – All Districts experienced an increase in average transaction value.
• Food retailing: 38% of NP spend; 46% Stratford; 43% in South.
Continued…. • Highest growth compared with same time last year: – New Plymouth District: Takeaways. – Stratford: Hardware; accommodation – South Taranaki: Apparel, fuel
South Taranaki • $98m: Jan – June 2017 • Spending: up 8.9%
• Volumes: up 7.6% • Average transaction value: 1.2% • 82% expenditure in South Taranaki was South Taranaki residents • Leakage: South Taranaki out-of-District spending: $46.54m • Loyalty ranking: 63.4% • Change in loyalty: 1.1% • Implications: Green shots? Spending and volumes up, as well as average transaction amount. Loyalty up. Cornerstones of food and fuel important. Fuel spend up 17%.
Stratford – bullet points • $48m: Jan – June 2017 • Spending: up 3.7% • Volumes: up 3.0%
• Average transaction value: 0.7% • 66.5% expenditure in Stratford was Stratford residents • Leakage: Stratford out-of-District spending: $31.4m • Loyalty ranking: 50.4% • Change in loyalty: -0.9% • Implications: People spending more, volumes up and average transaction spend up slightly. Stratford is an important regional hub and spend by ‘visitors’. Loyalty down slightly. Fuel transactions down 3.2%.
Online Spending - Taranaki
Half year to June 2017
About the analysis • Quantifies: – $ spent by Taranaki residents via on-line shopping – Products purchased – Trends/changes: e.g. proportionality vis-a-vis ‘bricks & mortar’,
• Methodology: – Independently undertaken by Marketview for VT. – Assessment of BNZ electronic card applications and other data/analysis.
• Purpose: – Provide market intelligence for retailers/business owners – Inform business and economic development strategies
Growth in online sales Change over the same period last year Taranaki Region
Total New Zealand
28.0%
Online spending increased in early months of 2017 (23.9%) easing to 8.6% for June quarter. NZ at 14.3% growth.
24.0% 20.0% 16.0% 12.0% 8.0% 4.0% 0.0% Sep 2015 -4.0% -8.0%
Dec 2015
Mar 2016
Jun 2016
Sep 2016
Dec 2016
Mar 2017
Jun 2017
Reaffirms the ongoing popularity of online shopping.
Online spending comprises around Approx.
8% of Taranaki retail spend Online share of total retail spending Taranaki Region
Total New Zealand
12.0%
Taranaki % spent on online sales is less than the national average
10.0%
8.0%
6.0%
4.0%
2.0%
0.0% Sep 2015
Dec 2015
Mar 2016
Jun 2016
Sep 2016
Dec 2016
Mar 2017
Jun 2017
International sales comprise 36-40% of Taranaki online sales Destination of Taranaki’s online sales
NZ retailers
International retailers
80.0%
60.0%
40.0%
20.0%
0.0% Sep 2015
Dec 2015
Mar 2016
Jun 2016
Sep 2016
Dec 2016
Mar 2017
Jun 2017
June2017 half-year
What was purchased online? Department/variety/other –biggest proportion
1.9% 12.5%
8.0%
22.7%
18.3%
12.4% 8.5%
15.7%
Daily Deals
Department, Variety and Other
Electrical and electronic
Fashion and accessories
Furniture, housewares and hardware
Groceries & Liquour
Pharmacy, Stationery, Antiques, Flowers
Recreation and books
Growth: Electrical/electronic % Change in online sales from same period last year 60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Electrical and electronic
Pharmacy, Furniture, Groceries & Department, Daily Deals Fashion and Recreation Stationery, housewares Liquour Variety and accessories and books Antiques, and Other Flowers hardware
Taranaki Summary… • • • • •
Online growth in Taranaki Jan- June 2017. Comprises 8% of retail spend Biggest spend: Department/variety/other (23%). Highest growth: Electrical and electronic. No major change in proportion of online NZ vs. international sales split
Thank you.