Spending in Taranaki and its Districts
Half year to December 2016
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
$595.96m spent in Taranaki during half-year to December 2016 Value of monthly Taranaki Spend July - Dec 2016 $140.00 m
$128.01 m
$120.00 m $100.00 m
$94.04 m
$88.58 m
$90.13 m
Aug
Sep
$96.44 m
$98.76 m
Oct
Nov
$80.00 m $60.00 m $40.00 m $20.00 m $0.00 m Jul
Dec
Spending within Taranaki
up 2.4% for half- year Although growth less than NZ at 4.3%
December – strongest growth
Taranaki - Monthly % change in spend over same time last year 5.0%
4.6%
4.7%
Nov
Dec
4.0%
3.0% 2.3%
2.0% 1.3% 1.0% 1.0%
0.0% Jul -1.0%
Aug -0.6%
Sep
Oct
$448.16m spent in New Plymouth District during half-year Spending up 2.3% relative to same 6-month period 2015 December highest spend month
Value of monthly spend - New Plymouth District July - Dec 2016 $120.00 m
$98.23 m
$100.00 m
$80.00 m
$71.34 m $65.53 m
$67.17 m
Aug
Sep
$71.89 m
$74.00 m
Oct
Nov
$60.00 m
$40.00 m
$20.00 m
$0.00 m Jul
Dec
$48.48m spent in Stratford District during half-year Spending up 3.2% relative to same 6-month period 2015 Value of monthly spend - Stratford District July - Dec 2016 $12.00 m
$9.67 m
$10.00 m
$8.00 m
$7.45 m
$7.65 m
$7.49 m
Jul
Aug
Sep
$8.02 m
$8.22 m
Oct
Nov
December busiest month $9.67m spent
$6.00 m
$4.00 m
$2.00 m
$0.00 m Dec
$99.32m spent in South Taranaki District during half-year Spending up 2.4% relative to same 6-month period 2015 Value of monthly spend - South Taranaki July - Dec 2016 $25.00 m
$20.12 m $20.00 m
$15.25 m
$15.41 m
$15.48 m
Jul
Aug
Sep
$16.53 m
$16.54 m
Oct
Nov
December busiest month - $20.12m spent
$15.00 m
$10.00 m
$5.00 m
$0.00 m Dec
District Analysis
75% spent within New Plymouth District Retail Spend in Taranaki - District % share 6 months ending Dec 2016 South Taranaki District, 16.7%
Stratford District, 8.1%
New Plymouth District, 75.2%
Spend relative to same time previous year
Snapshot % change in retail spend - 6 months ending Dec 2016 relative to same period 2015 5
4.3
4.5
4 3.5
3.2
3 2.5
2.3
2.4
2.4
South Taranaki District
Taranaki
2 1.5 1 0.5 0
New Plymouth District
Stratford District
New Zealand
July – December 2016
13.65m Taranaki transactions 3.4% increase from 2015 Nationally, transactions up 6.1% % change in number of transactions July - Dec 2016 8
6.9
7
6.1 6 5
4.3
4 3
3.4 2.4
2 1 0 New Plymouth District
Stratford District
South Taranaki District
Taranaki
New Zealand
$43.65 – Taranaki’s average transaction value Highest average transaction value in New Plymouth District = $45.16 Average Transaction Value Taranaki: $43.65 $46.00
$45.16
$44.00
$42.72
$42.00
$40.00
$38.28 $38.00
$36.00
$34.00 New Plymouth District
Stratford District
South Taranaki District
Average transaction value Declined in all Taranaki Districts (region = -1.0%) % change in average transaction value relative to same time last year Taranaki: -1% 0.0% -0.5%
New Plymouth -0.1% District
Stratford District
South Taranaki District
-1.0% -1.5%
-1.1%
-2.0%
-2.5% -3.0% -3.5% -4.0% -4.5%
-4.2%
What did people spend money on? Analysis by Taranaki District
NPD ($448.16m): Biggest Spend: food (34%) Biggest growth: appliances (19.8%); Accommodation (16.2%) Biggest spend % Value of Spend by Category - New Plymouth District ($448.16m) 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
33.1%
17.3% 4.0%
7.6%
10.9%
8.8%
4.5%
6.3% 1.4%
2.6%
3.6%
% change in Spend by category - New Plymouth District (2.3% overall) 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0%
19.8% 9.9%
12.4% 5.2%
-1.6%
-4.9%
-1.7%
-1.0%
8.4%
16.2% 6.2%
New Plymouth District December 2016 accommodation, bars, cafes, takeaways Month of Dec: % change in spend by category in New Plymouth District (4.2% overall) 30.0%
27.8%
25.0%
20.0%
15.0%
12.5%
13.6% 11.3%
10.0%
4.8%
5.0%
4.3%
1.5% 0.0%
-5.0%
-10.0%
-15.0%
8.3%
7.3%
-9.0%
5.1%
Stratford ($48.48m): Biggest Spend: food (46%) Biggest growth: Hardware/homeware; (25.2%) Bars/cafÊ’s/restaurants (9.8%) Biggest spend Stratford: Value of Spend by Category (%) total = $48.48m 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%
46.4% 23.8% 2.7%
4.8%
Biggest growth
1.2%
4.3%
1.7%
3.2%
11.9%
Stratford: % change in spend by Category (3.2% overall) 30.0%
25.2%
25.0% 20.0% 15.0% 10.0%
9.8% 4.9%
8.0%
6.2%
6.9%
5.0%
0.0% -0.8%
-5.0% -10.0%
-5.3%
-5.5%
Stratford District December 2016 – up 8.6% accommodation, hardware/homeware, restaurants/bars, food Dec ONLY: Stratford % Change by category (8.6% overall) 50.0%
45.7% 41.2%
40.0%
30.0%
20.0%
17.6% 10.3%
10.0%
6.1%
5.2%
0.0% -2.5% -10.0%
-8.9% -14.3%
-20.0%
South Taranaki ($99.32m): Biggest Spend: food (42%)
Biggest growth: Takeaways (10.8%); Fuel (10.1%); Hardware/homeware (12.5%) Biggest spend 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
South Taranaki: % Spend by category (Total = $99.32m)
42.1%
16.2% 5.9%
Biggest growth
13.7%
10.8%
3.7%
1.1%
4.8%
1.6%
South Taranaki: % change in retail spend by category (2.4% overall)
20.0% 10.8% 10.0% 1.2%
12.5%
10.1% 5.2%
5.3%
0.3%
0.0% -4.3%
-10.0% -20.0% -30.0% -40.0%
-33.4%
South Taranaki District December 2016 – up 5.4% Fuel (up 21.3%) Dec Only: South Taranaki: Spend by category % change (5.4% overall) 25.0% 21.3% 20.0% 13.4%
15.0% 10.0% 5.5% 5.0%
1.2%
0.9% 0.0% -5.0%
-2.2%
-1.6%
-3.1%
-10.0% -15.0% -20.0%
-13.3%
Origin of Customers’ Spending at merchants in the Taranaki region
“Who’s spending in our region and Districts?”
The importance of
Local customers 89% of spending 89.5% of transactions conducted in the Taranaki region for the July- Dec 2016 half year were from Taranaki ‘cardholders’
79% 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 (11.7%) than ‘rest of Taranaki region’ (9%). Origin of customers spending in the New Plymouth District July - Dec 2016 Rest of New Zealand, 10.1%
International, 1.6%
South Taranaki District, 4.6% Stratford District, 4.6%
New Plymouth District, 79.1%
South Taranaki District – more reliant on
South Taranaki resident spend
(82%) Origin of customers spending in South Taranaki July - Dec 2016 International, 0.6% Rest of New Zealand, 8.0%
South Taranaki District, 82.4%
New Plymouth District, 3.8%
Stratford District, 5.2%
30% of expenditure in Stratford
was
from non-Stratford ‘card holders’* Origin of customers Spending in Stratford District July - Dec 2016 Rest of New Zealand, 6.9%
International, 0.9% New Plymouth District, 8.7%
South Taranaki District, 13.6%
Stratford District, 69.8%
• Stratford is quite different to NPD and STD. • “Rest of region” = 22.3% 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 in New Plymouth District by non-NPD residents Total = $93.6m $25.000 m
$20.000 m
$15.000 m
$10.000 m
$5.000 m
$0.000 m Jul
Aug
Sep Taranaki
Oct NZ
International
Nov
Dec
visitor spend in South Taranaki
Spend patterns within the South Taranaki District by Non-Residents N = $17.5m
$4.000 m
$3.500 m
$3.000 m
$2.500 m
$2.000 m
$1.500 m
$1.000 m
$0.500 m
$0.000 m Jul
Aug
Sep Region
Oct NZ
International
Nov
Dec
‘visitor’ spend in Stratford Spend patterns within Stratford by non-residents n = $14.62m $3.500 m
$3.000 m
$2.500 m
$2.000 m
$1.500 m
$1.000 m
$0.500 m
$0.000 m Jul
Aug
Sep Taranaki
Oct NZ
International
Nov
Dec
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 December 2016: $53.6mm
New Plymouth District residents - spend pattern outside the District $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 Jul
Aug
Sep
Spent in other parts of the Taranaki region
Oct
Nov Other parts of NZ
Dec
South Taranaki District Estimated resident spending outflow for half year December 2016: $45.22m
South Taranaki residents - spend pattern outside the District $12.00 m
Primary destination for spending by South Taranaki residents, when not spending within their District, is still within Taranaki Region.
$10.00 m
$8.00 m
$6.00 m
$4.00 m
$2.00 m
$0.00 m Jul
Aug
Sep Region
Oct NZ
Nov
Dec
Stratford District Estimated resident spending outflow for half-year ending December 2016: $32m Stratford residents - spend pattern outside District n= $31.69m Other parts of region
Majority of spend outside District is still within Taranaki Region
NZ
$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 Jul
Aug
Sep
Oct
Nov
Dec
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: 86.8%* Highest for hardware/homeware & food; lowest for accommodation New Plymouth District Loyalty 120.0%
100.0%
96.3%
94.6% 84.9%
80.0%
91.6%
88.9%
91.3%
86.9%
84.3% 77.5%
77.0%
60.0%
40.0% 20.5% 20.0%
0.0%
*Completed card purchase within own District
New Plymouth District residents
-0.2% overall change in Loyalty from same time last year Change in loyalty 3.5% 3.1% 3.0%
2.5% 2.0% 2.0%
1.5% 1.0%
1.0% 0.6% 0.4%
0.5%
0.4% 0.0%
0.0% -0.2%
-0.1%
-0.5% -0.7% -1.0%
-0.7%
South Taranaki residents
Loyalty rating: 64.3%* Highest for food and fuel; lowest for apparel; accommodation South Taranaki loyalty 90.0% 80.0% 70.0%
77.9%
72.4%
68.5%
66.9% 57.5%
60.0% 50.0%
54.7%
42.1%
40.0% 30.0% 20.0%
16.7%
14.6%
10.0% 0.0%
*Completed card purchase within own District
South Taranaki residents: 0.2% change in Loyalty from same time last year South Taranaki - change in loyalty 8.0%
6.1% 6.0% 4.0%
2.3%
2.2% 2.0%
0.6%
0.0% -2.0% -4.0%
-1.2%
-1.7%
-2.5%
-2.9%
-6.0% -8.0% -10.0%
-8.6%
Stratford residents:
Loyalty rating: 51.6% Highest for food and fuel; lowest for apparel Stratford - Loyalty 90.0% 80.0%
76.4% 70.1%
70.0% 60.0% 46.8%
50.0%
42.4% 37.7%
40.0% 31.5% 30.0%
25.2%
20.0% 11.1% 10.0% 0.0%
23.2%
Stratford residents: -1.7% decrease in Loyalty but food retailing - biggest gain (0.9%) Change in loyalty by Stratford residents 2.0%
0.9%
0.8%
0.0% -0.2%
-2.0%
-0.3%
-0.8%
-1.6%
-4.0% -3.9% -5.3%
-6.0%
-8.0%
-10.0% -10.8% -12.0%
In a nutshell • Total spend (July – Dec 2016): $596m. • Market share: 75% NPD; 17% South Taranaki; 8% Stratford • Spend up 2.4% from same time last year. Biggest $ increase in Stratford (3.2%).
• Transactions 3.4% up. South Taranaki District led. • Average transaction value: $43.65 – Highest in New Plymouth District ($45.16) – All Districts experienced a decline in average transaction value.
• Food retailing: 34% of NP spend; 46% Stratford; 42% in South.
Continued…. • Highest growth compared with same time last year: – New Plymouth District: Appliances; accommodation. – Stratford: Cafes, bars and restaurants, takeaways, food retailing
– South Taranaki: Takeaways, fuel, homeware/hardware
• December 2016 – better than Dec 2015 – New Plymouth District - up 4.2% • Growth: accommodation/bars/restaurants
– Stratford – up 8.6% • Accommodation; home/hardware
– South Taranaki – up 5.4% • Fuel/takeaways
Online Spending - Taranaki
Half year to December 2016
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
Online spending increased in Taranaki September to Dec 2016 compared with same time last year (15.3%).
Total New Zealand
24.0%
20.0% 16.0% 12.0% 8.0% 4.0%
0.0% Mar 2015 -4.0% -8.0%
Jun 2015
Sep 2015
Dec 2016
Mar 2016
Jun 2016
Sep 2016
Dec 2016
BUT: NZ increased much more (19.4%)
Online spending comprises around
7-8% of Taranaki cardholder spending on a quarterly basis Online share of total retail spending Taranaki Region
Total New Zealand
10.0%
Taranaki % spent on online sales is less than the national average
9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Mar 2015
Jun 2015
Sep 2015
Dec 2016
Mar 2016
Jun 2016
Sep 2016
Dec 2016
International sales comprise 35-40% of online sales Destination of Taranaki’s online sales
NZ retailers
International retailers
80.0%
Proportion of spend on NZ v international online sales remains consistent in Taranaki
60.0% 40.0% 20.0% 0.0% Mar 2015
Jun 2015
Sep 2015
Dec 2016
Mar 2016
Jun 2016
Sep 2016
Dec 2016
December 2016 half-year
What was purchased online? 1.5% 14.1%
Department/variety/other –biggest proportion
23.3%
8.4%
11.3%
20.2% 4.9%
16.4%
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 groceries, fashion, dept stores Change over same time last year 40.0% 30.0% 25.1% 21.0% 20.0%
15.5% 9.5% 5.0%
0.0%
-20.0%
Daily Deals Department, Electrical Fashion and Furniture, Groceries & Pharmacy, Recreation -5.3% Variety and and accessories housewares Liquour Stationery, and books Other electronic and Antiques, hardware Flowers
-40.0%
-60.0%
-69.5%
Taranaki Summary… • Online growth in Taranaki approaching December quarter. • Comprises 6-8% of retail spend • Biggest spend: Department/variety/other (23%). • Highest growth: Groceries/liquor; fashion; dept store. • No change in proportion of online NZ vs. international sales split
Thank you.