We are buying online

Report shows Gisborne leading growth in e-retail.

Report shows Gisborne leading growth in e-retail.

Growth in spending by Gisborne online shoppers is the fastest in the country and retailers have been encouraged to adapt to reap the benefits.

Gisborne online shoppers spent $30 million on goods last year, an increase of 19 percent on 2016.

That compares with 12 percent growth in spend by Auckland online shoppers, and 16 percent by Wellington.

These figures come in a new report commissioned by NZ Post in partnership with Datamine, using card transaction data.

Sequence Surf Shop owner Blair Stewart has faced tough competition from online retail giants.

“We noticed and talked with our customers about buying online a few years back.

“The biggest challenge was people using our store as the changing room for them to go and buy online elsewhere.

“As you can imagine, this was a kick in the guts — but we have learned from these challenges and have created ways to turns the sales back to our store.”

In a matter of days, Sequence would launch an online store, he said.

“We will start off small but as time goes by, our offering will increase.”

Heart of Gisborne manager Lana Davy said local businesses needed to embrace their online presence.

“Online shopping is not something we can stop, we just need to get on board.

“It is definitely a growing trend. We encourage our businesses to be more available for people to shop online and have their own online presence.”

NZ Post chief marketing officer Bryan Dobson said the report showed in New Zealand online shopping was growing at a rate of 13 percent and was fuelled by a 23 percent increase in spend with overseas companies.

The report also identified among local retailers online revenues increased 9 percent, 10 times the rate of ‘bricks and mortar’ sales.

“The report shows Kiwis spent NZ$3.6 billion online in 2017 and that made up 8.1 percent of total New Zealand retail spend. The average online shopper spends over $2350 online each year, with rural online shoppers now the largest spenders — each spending over $2500 online in 2017.

“But eCommerce is still growing. Globally, it is twice the size it was five years ago,” said Mr Dobson.

Retailers adopting an online presence

Other retailers the Herald spoke to said they were pleased with their online presence and received orders from all over NZ with many repeat customers.

Gisborne Chamber of Commerce chief executive Terry Sheldrake said he had discussed online shopping with a number of retailers who said it was competition they could do without yet it was here to stay.

Gisborne Mayor Meng Foon said the retail world was changing very quickly.

“It is a difficult space for retail stores — but I have seen smart retailers who have a physical premise as well as an online store. They have invested in the online platform and are doing well,” Mr Foon said.

Shops used their store for the storage and display for the public and when someone ordered on line, they took the product off the shelf and put it on the courier.

Online shopping was easy and being 24/7 was another convenience.

“Just click at your leisure and many offer free delivery.”

Mr Foon personally prefers going into shops to buy.

“I love to see my goods, and try on my shoes and shirts. You can’t beat that.”

There was a need for balance in peoples’ lives — quality time versus time walking the aisles.

“So embrace the new ideas, go to other busy stores around the country and see what they are doing. You can bring back the concepts,” Mr Foon said.

Growth in spending by Gisborne online shoppers is the fastest in the country and retailers have been encouraged to adapt to reap the benefits.

Gisborne online shoppers spent $30 million on goods last year, an increase of 19 percent on 2016.

That compares with 12 percent growth in spend by Auckland online shoppers, and 16 percent by Wellington.

These figures come in a new report commissioned by NZ Post in partnership with Datamine, using card transaction data.

Sequence Surf Shop owner Blair Stewart has faced tough competition from online retail giants.

“We noticed and talked with our customers about buying online a few years back.

“The biggest challenge was people using our store as the changing room for them to go and buy online elsewhere.

“As you can imagine, this was a kick in the guts — but we have learned from these challenges and have created ways to turns the sales back to our store.”

In a matter of days, Sequence would launch an online store, he said.

“We will start off small but as time goes by, our offering will increase.”

Heart of Gisborne manager Lana Davy said local businesses needed to embrace their online presence.

“Online shopping is not something we can stop, we just need to get on board.

“It is definitely a growing trend. We encourage our businesses to be more available for people to shop online and have their own online presence.”

NZ Post chief marketing officer Bryan Dobson said the report showed in New Zealand online shopping was growing at a rate of 13 percent and was fuelled by a 23 percent increase in spend with overseas companies.

The report also identified among local retailers online revenues increased 9 percent, 10 times the rate of ‘bricks and mortar’ sales.

“The report shows Kiwis spent NZ$3.6 billion online in 2017 and that made up 8.1 percent of total New Zealand retail spend. The average online shopper spends over $2350 online each year, with rural online shoppers now the largest spenders — each spending over $2500 online in 2017.

“But eCommerce is still growing. Globally, it is twice the size it was five years ago,” said Mr Dobson.

Retailers adopting an online presence

Other retailers the Herald spoke to said they were pleased with their online presence and received orders from all over NZ with many repeat customers.

Gisborne Chamber of Commerce chief executive Terry Sheldrake said he had discussed online shopping with a number of retailers who said it was competition they could do without yet it was here to stay.

Gisborne Mayor Meng Foon said the retail world was changing very quickly.

“It is a difficult space for retail stores — but I have seen smart retailers who have a physical premise as well as an online store. They have invested in the online platform and are doing well,” Mr Foon said.

Shops used their store for the storage and display for the public and when someone ordered on line, they took the product off the shelf and put it on the courier.

Online shopping was easy and being 24/7 was another convenience.

“Just click at your leisure and many offer free delivery.”

Mr Foon personally prefers going into shops to buy.

“I love to see my goods, and try on my shoes and shirts. You can’t beat that.”

There was a need for balance in peoples’ lives — quality time versus time walking the aisles.

“So embrace the new ideas, go to other busy stores around the country and see what they are doing. You can bring back the concepts,” Mr Foon said.

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