Key takeaways

Consumers are continuing to shop more online so businesses should think about investing more in digital marketing.

Consumers are increasingly expecting Buy Now Pay Later options when purchasing so businesses should consider offering this, although with care.

Money was tight for many Kiwis in 2024 and it is likely to remain so until late 2025, after analysing ANZ card transaction figures for the final quarter of 2024, comparing it with the same period in 2023.

Consumers tightened their belts, prioritising essentials and value over discretionary items, and for some it was a losing battle.

Payments to debt collection agencies including Baycorp NZ and Recoveries Corp, rose by 117% in Q4 of 2024 compared with the same period the previous year, we found.

Buy Now Pay Later options are increasingly popular with consumers but they will have to face the consequences if they can’t pay later.

Businesses benefiting more from consumer spend

The ANZ spending figures for the final quarter of 2024 clearly identified the winners and losers of NZ consumers’ more cautious spending.

Organisations and retailers who benefited from consumer spend in 2024 included Lotto NZ, fast food chains like McDonalds, Burger King, Subway and Tank, and food delivery services including Uber Eats.

Grocery spending generally was up 4% compared with 2023, largely in line with inflation. Meanwhile, there was a trend for price-sensitive shoppers to shift to perceived, more affordable chains such as Pak ‘n Save.

Kiwis were driven to look for these cost savings as they faced rises in insurance premiums (11-12%) on average, while government services including council rates and NZTA fees increased by 23%.

Restaurants and apparel retailers, especially family clothing stores, unfortunately missed out on consumer spending in late 2024.

The vehicle market has also seen a downturn, reflecting a broader reluctance to commit to large purchases in an uncertain economic climate.

Where Kiwis are doing their online shopping

Consumers were spending more on online shopping, streaming services and digital goods including PlayStation Network purchases at the end of 2024, we found.

Online shopping grew between 12% to 15% in 2024 compared with 2023, with spending on international online platforms such as Temu and Shein up by between 15 to 30%, potentially impacting local retailers.

Given the growing spend in online retailing, businesses should think about investing more in digital marketing, we believe.

This data suggests that businesses should focus on affordability, online retail and targeted advertising to appeal to cost-conscious consumers.

Given the increased uptake of Buy Now Pay Later, particularly on household appliances, (up 10-17%) businesses should consider offering these flexible finance options. But companies offering credit should be prudent in assessing customer risk.

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Physical vs Digital

Kiwi consumers tightened their belts in late 2024 but still spent up online