Southlanders use eftpos more before Expo

BY MICHAEL FORBES

Southlanders put more money through eftpos machines in the weekends before the 2007 and 2008 Rice's Powerstore Expo than during it, new figures show.

Paymark figures issued to The Southland Times show only a marginal decrease in eftpos spending the weekend before the expo this year.

In 2007, the value of eftpos transactions through the Southland Paymark network was about $7.5 million during the weekend – Friday, Saturday, Sunday – before the expo, compared with about $6.8 million during the expo itself.

In 2008, eftpos spending the weekend before was about $8.1 million and dropped to $7.8 million during expo weekend.

Southlanders put $7.8 million on their eftpos and credit cards the weekend before this year's expo, which increased slightly to $7.9 million the following week.

Powerstore general manager Craig Balfour put the numbers down to a high level of hire purchase sales during expo weekend.

"HP sales didn't jump all that much but they're always high in Invercargill," he said. "We do more HP sales there than anywhere else in the South Island."

More than half of Powerstore's sales in Invercargill were done via hire purchase, Mr Balfour said.

Many people also visited Southland from outside the region for the expo, and other businesses tried to capitalise on that in the weeks before and after, he said.

Cash and cheque sales were still relatively minor, he said.

New Zealand Retailers' Association chief executive John Albertson said large sales usually forced a change in the way people budget.

"It could be the case that people spend all their money on clothing and footwear the weekend before because they know they're going to buy a big TV."

H & J Smith chief executive John Green agreed there were many variables attached to Paymark figures, which could skew their numbers.

Factors such as stores holding winter clearances in the leadup to the expo, and even the weather could conspire to change the habits of some people, Mr Green said.

A lot of customers may choose to use store cards during expo weekend, rather than put items on their credit card, he said. "When any promotion like this is repeated, people become much more tactical about how they shop it."

Paymark processes more than 75 per cent of all electronic transactions in New Zealand.

THE DOLLARS
Value of transactions through Paymark network in Southland

2006 Expo weekend:$6,578,738
Weekend before: $6,568,701

2007 Expo weekend: $6,860,456
Weekend before: $7,535,516

2008 Expo weekend: $7,854,381
Weekend before: $8,171,965

2009 Expo weekend: $7,948,720
Weekend before: $7,889,525

michael.forbes@stl.co.nz

- © Fairfax NZ News