Auckland retailer group says recession is receding

Heart of Auckland City chief executive Alex Swney believes the CBD is on its way to recovery.

Mr Swney says the latest consumer spending data and research conducted by the BIG little city shows we have come out of the recession faster than anticipated.

“We are starting to see the promised green shoots of recovery, and it bodes well for Christmas retailing,” he says.

Heart of the City’s data shows that while spending in Auckland’s CBD was down marginally June on June, the result halts the bigger declines of the previous months.  Overall, the number of transactions was up - increasing by more than one per cent.

“We believe the statistics validate what we have been hearing on the street – that consumer confidence is up, and we are moving out of the recession,” Mr Swney says.

Mr Swney says the BIG little city advertising campaign – which ran from May through July – has contributed to improving CBD visitor numbers and frequency while raising the city’s profile as an event destination.

Heart of the City represents Auckland city businesses. The group says the campaign, which was created with the support of 20 partner organisations to promote the CBD, successfully achieved its aim of driving people into the CBD and getting them to spend.

“We’re pleased with the initial results of the campaign,” he says. “We believe the advertising has been one of the key contributors in helping turn the tide against the recession.”

Mr Swney says the campaign research shows positive results that indicate New Zealanders are embracing Auckland’s city centre as providing the country’s biggest city experience.

The survey shows the ads helped more than two-thirds of both Aucklanders and non-Aucklanders feel that Auckland’s biggest city is packed full of great events and shows. Six out of 10 out-of-towners felt the ads would motivate them to visit the city to see a show or event.

Similar numbers believed the ad campaign makes them feel Auckland city is an aspirational, cultured, vibrant city full of experiences waiting for them.

Visits to the city by Aucklanders improved overall during the campaign but visits by non-Aucklanders were static, reflecting Swney says the general trend for New Zealanders to travel less during the recession.

“The good news for Auckland CBD businesses is that consumer spending showed positive growth from four main areas – Christchurch, North Shore City, Tauranga and Hamilton.  

“Our strategy was to push the relevant and positive reasons to visit the city. One in 10 Aucklanders surveyed had either seen a show or booked to see a show as a result of the ads.

“Nearly a million New Zealanders saw the ads with almost 900,000 seeing them three or more times so there was good awareness – TV was very important with 97 per cent of people who saw the campaign seeing it on TV.

“It’s a good start, but there’s more to do, so we have another burst of advertising scheduled for late spring running through to the festive season and more activity in 2010.”

Mr Swney says the city has some exciting events on the horizon, many of them exclusive to Auckland.

The Big Little City campaign substantially outperformed its media targets while it also generated nearly $500,000 PR value of editorial coverage.

The consumer spending statistics show the key categories that contributed to the increase in transaction volumes in June were accommodation, department stores, books and stationery and sports goods retailers. Spending growth was recorded in pubs, taverns and bars, takeaways, pharmaceuticals and cosmetics and watches and jewellery.

The campaign appeared on television and in print with the tactical TV ad and print advertising featuring a line up of the city’s best entertainment to entice visitors. 

The BIG Little City campaign is funded by CBD business ratepayers and includes 20 private sector key partners.

The campaign was the subject of a tracking survey during May and July of this year to coincide with advertising schedules. Altogether nearly 1,000 people in Auckland, Wellington, Christchurch and north of Taupo were interviewed.

Note to editors:

Upcoming events in Auckland include Diwalii Festival (Oct 10-11), Il Divo (Oct 2), Black Eyed Peas (Oct 13), Andrea Rieu (Oct 24 & 25), Nickelback (Nov 7), Green Day (Dec 18 & 19), Pearl Jam (Nov 27), Christmas in the Park (Dec 12).