Takapuna Businesses Boost Retail Spending Amid Economic Challenges

Businesses in Takapuna, located on Auckland’s North Shore, have reported a significant increase in retail and hospitality spending, despite ongoing economic challenges. In June 2023, spending at hospitality venues surged by 10.1 percent, while overall spending during the first half of the year rose by 3 percent. This growth is notable, particularly against the backdrop of declining economic indicators in New Zealand.

Recent data from Stats NZ highlighted rising food prices, which increased by 4.6 percent, and a drop in household savings amounting to $392 million. Additionally, inflation continues to rise, with Infometrics reporting a decline in electronic card spending for the year ending March. The unemployment rate has also escalated to 5.2 percent, marking the highest level since 2020.

The Takapuna Business Association acknowledged the difficulties faced by consumers and businesses alike. Chief Executive Terence Harpur emphasized that the current economic climate has made consumers more cautious with their spending. “Things are definitely tight,” he stated in an interview. “High cost of living and inflation are pushing people to be more considerate about where they spend their hard-earned money.”

Investment in Infrastructure Drives Growth

According to Harpur, the increase in spending can be attributed to years of investment in infrastructure, urban planning, and community events within Takapuna. Improvements in transport and accessibility have made the area more inviting to shoppers and diners. “We’ve seen some strong transport and accessibility improvements, and we’re also changing the centre to be more pedestrian-friendly,” he noted.

Recent enhancements include a new town square, an upgraded high street, and new parking facilities, all of which contribute to a more enjoyable environment for visitors. Harpur explained that these changes encourage people to spend more time in the area, ultimately leading to increased spending. “They enjoy the environment and they stay around for a bit longer, which tends to result in higher spending,” he said.

Harpur also contrasted Takapuna’s success with the challenges faced by other areas in Auckland. “Retail spending across Auckland has actually been really tough, especially around the central city area,” he remarked. His empathy toward struggling small businesses in those regions was clear as he described the broader retail landscape.

A Ray of Hope for Retailers

Despite the prevailing economic difficulties, Harpur expressed optimism regarding the future of retail and hospitality in Takapuna. “There are some green shoots indicating that people are still spending money,” he said. He believes that businesses that provide the right products and services can still attract customers and generate revenue.

Harpur’s comments reflect a growing sentiment that, even in challenging times, strategic investments and community-focused initiatives can lead to positive outcomes. As Takapuna continues to adapt and innovate, local businesses may find new opportunities for growth in a competitive market.