As Christmas approaches, New Zealand retailers are riding a wave of positive momentum from a robust Black Friday weekend. At the same time new Prospa research finds that more than half of SMEs believe summer is a critical time for their business, with many anticipating a stronger season compared to last year.
Data from Worldline NZ’s payments network revealed that consumer spending over the three-day Black Friday weekend reached $175.6 million, matching last year’s total.
Worldline NZ Chief Sales Officer, Bruce Proffit, noted an uptick in the number of transactions (up 2.8 percent) but a slight drop in the average spend per transaction, which was $83.50 (down 2.8 percent). Despite this, spending jumped significantly compared to the preceding weekend, with a 17 percent increase in the number of transactions.
“Black Friday was clearly a big deal for retailers this year,” says Proffit. “The average transaction size also rose from the previous weekend, meaning people were making more purchases and spending more per purchase despite widespread discounting.”
However, spending patterns varied regionally. Smaller regions saw significant increases, while major areas such as Auckland/Northland and Canterbury experienced declines, underscoring tight consumer budgets despite the spending spike.
This Black Friday boost is expected to flow into the crucial Christmas and summer trading periods for many SMEs, with the summer season a pivotal time for business activity.
Prospa’s SME Insight Report, released yesterday, revealed that over half of SMEs (51 percent) say the summer season is vital to their operations. Following years of economic headwinds, 43 percent of SMEs expect this summer to outperform last year’s, buoyed by the recent retail success and a more optimistic market outlook.
Adrienne Begbie, Managing Director of Prospa NZ, highlights the resilience of New Zealand’s SME sector.
“It’s comforting to see small business owners starting to feel more optimistic about the health of their businesses after what’s been a challenging few years. While many of us are winding down, SMEs are gearing up for their busiest period.”
However, challenges remain. Among SMEs for whom summer is critical, staffing shortages (36 percent) and the need to offer competitive pricing (52 percent) are top concerns. Additionally, half of SMEs have less than three months’ worth of cash reserves, which leaves many vulnerable during peak trading periods.
In response to these challenges, SMEs are increasingly turning to alternative financial solutions to manage cash flow and fund growth. Awareness of nonbank lenders has risen to 65 percent, with 45 percent of SMEs trusting these providers to deliver effective lending options.
“Alternative lending is no longer a last resort. It’s becoming a preferred choice for SMEs looking to remain competitive and adapt to changing market conditions,” says Begbie.
With a positive Black Friday weekend behind them and a busy summer ahead, New Zealand’s SMEs are embracing proactive strategies to thrive. Whether expanding market reach (28 percent), adjusting pricing (27 percent), or investing in marketing (25 percent), these businesses are ready to make the most of the holiday season.
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