Part of Takapuna's shopping district. (File pic) Photo: Takapuna Business Association
Businesses in Takapuna on Auckland's North Shore believe they have cracked a way to get people spending more amid the tough economic headwinds.
Its businesses are reporting a 10.1 percent surge in spending at hospitality sites in June alone, and a 3 percent rise in overall spending in the first half of this year.
Those hikes come at the same time as a raft of downward economic indicators.
Last month Stats NZ reported food prices were up 4.6 percent and household savings dropped $392 million.
Inflation is on the up, and Infometrics says electronic card spending was down in the year to March and that consumer spending remained weak.
On Wednesday it was announced the unemployment rate has risen to 5.2 percent, the highest level since 2020.
The Takapuna Business Association acknowledged times were hard for consumers, retailers and hospitality venues alike.
"Things are definitely tight - high cost of living, inflation is still ramping up a little bit - so people are just being more considerate and careful about where they're spending their hard-earned money," chief executive Terence Harpur told RNZ.
The business association said it was years of investment in infrastructure, events and urban planning in Takapuna that had led to people spending there.
"We've seen some strong transport and accessibility improvements, we're also changing the centre to be more pedestrian friendly," Harpur said.
"We've got a wonderful new town square, an upgraded high street, new parking buildings, a new beachfront playground area and all of those things increase the dwell time when people come. They enjoy the environment and they stay around for a bit longer and they tend to spend more when they spend more time there," he said.
Harpur said Takapuna was having success when "that's simply not the case" in many parts of Auckland.
"Retail spending across Auckland has actually been really tough, especially around the central city area has been tough.
"My heart goes out to those small business in those areas," he said.
"It is tough out there though and a lot of retailers are doing it tough but I'm hoping this is a little bit of a beacon of light for retailers and hospitality out there that there are some greenshoots and people are still spending money, and if you provide the right product and the right service that you can still be attracting customers and getting that money coming through your business," Harpur said.
