Retailers tip rush for gifts

Wellington retailers are banking on a last-minute Christmas rush but do not expect the festive season to be a record-breaker.

Kirkcaldie & Stains managing director John Milford said sales had been growing steadily through November, but because Christmas fell on a Friday this year shoppers would leave their gift-buying later. The first day of December would kick some into action, he said.

Kirk's sales figures for October and the first three weeks of November were about the same as last year's but prices had increased this year, indicating sales were probably slightly down.

"I really think we're going to have to work hard for it this year. I don't expect it to be a record Christmas."

The store had between 10 and 15 per cent less stock than last year across its categories. "That shows we're not terribly optimistic."

Cosmetics and other "feel-good" categories such as fashion were performing well but this was balanced out by subdued activity in home-related goods such as linen and furniture.

Jordan Forbes, manager of CD and DVD store Marbecks on Lambton Quay, said activity had been patchy and this November had been noticeably quieter than November last year.

Customers were spending less this year.

"People seem hesitant to part with their hard-earned cash at the moment. It's a hard sell, but I'm expecting it to pick up."

Christmas CDs remained popular but the big seller was Susan Boyle, the Britain's Got Talent and YouTube sensation, who released her first album last week, he said.

"Susan Boyle has blown us all away. I don't think anyone anticipated how popular she would be."

Marbecks chief executive Roger Harper said the CD was on track to notch up the most sales of any album in its first week in Marbeck's 75-year history.

The company expected a late rush from the second week of December, and sales to lift at least 20 per cent each week in the month.

Sales last week were about 30 per cent up on the first week of November. Volumes for the month were slightly down on last year but it was still confident of a reasonable Christmas.

"If people are coming down in value we're a good option for them. CDs and DVDs are good cheap gifts."

Hurricane Jeans manager Damian Braddock said sales lifted slightly last week, with the first Christmas shoppers appearing.

The clothing store ordered stock cautiously this year in expectation of a quieter Christmas as consumers recovered from the recession.

A lot of other stores were holding sales. "That doesn't help the retail cause."

He was hopeful of a better Christmas than last year.

"Petrol is cheaper than it was this time last year and overseas travel is so much cheaper. People should have more money."

Not all retailers are reporting subdued sales.

Sally Ombler, manager of gift shop IkoIko, said the Christmas rush started at the end of September and the store would be frantic till Christmas Eve.

"Last year with the recession some customers were saying they were trying to keep their budgets low ... but we haven't had anyone say that this year.

"People don't seem to be holding back at all."

An ANZ-Roy Morgan consumer confidence survey released last week showed overall confidence was down 4.4 points in November after a four-month run of increases, and indicated that spending also fell in November.

- © Fairfax NZ News