Grape hangover frightens shoppers

Struggling grapegrowers and a lack of job security have been blamed for a dramatic drop in spending in Marlborough, with the district's eftpos transactions for the past year the lowest in the country.

According to Paymark figures released yesterday, eftpos transactions in Marlborough by value were 9.2 per cent lower in the 12-month period to October compared to the same period the previous year.

The number of transactions fell 8.4 per cent.

Nationally, eftpos transaction numbers in the year to October were up 4.9 per cent and in terms of value rose 3.3 per cent.

The West Coast was the only other region to see a dip in the value of eftpos transactions, with a 1.4 per cent fall. However, the number of transactions in that region was up 1.8 per cent.

Marlborough Chamber of Commerce general manager, Brian Dawson, said Marlborough had significantly less essential and disposable income in the past year compared to the previous year.

He said the situation was directly related to the wine industry.

"The rest of the country isn't as exposed to the wine industry as we are," he said.

"It's the significant impact of that."

Marlborough had enjoyed a good economic microclimate on the back of the wine industry while the rest of the country was plunged into recession, but the region was suffering its share of the economic pain now, Mr Dawson said.

The chamber and the Marlborough District Council should push Marlborough's other industries – aviation, forestry, aquaculture and tourism – as a result, he said.

Unemployment had gone from a "handful to somewhere in the 300s" and people could no longer work overtime for extra income, Mr Dawson said.

"[Overtime] used to pay for the `nice to have' things but now they're paying the mortgage and the groceries and hoping they have a job next month."

Prosper mortgage consultant and financial adviser Paul Fuller attributed the lower spending to poor job security, the viticulture industry, redundancies at Safe Air earlier this year and uncertainty over Base Woodbourne.

People spending less was part of a chain reaction as everyone tightened the purse strings, he said.

Marlborough's delayed reaction to the economic downturn reflected the province's dependence on viticulture, which relied on income from the harvest a year earlier.

The high New Zealand dollar was also affecting the region significantly making it tough for exporters, Mr Fuller said.

Blenheim retailers reported mixed customer spending habits in the past year.

Stirling Sports staff said the year had been "absolutely quiet" and put it down to the economic downturn.

Usually the store would have several items on layby now for Christmas, but so far they had nothing. People were looking but not committing, members of staff said.

Redhot Fashions sales assistant Jo Bezar said the store had clocked better sales in the last few months than its sister store McRae's because it had a wider range of prices and many people were looking for lower price tags.

"People are watching their pennies. But it will pick up for Christmas."

Winter was always quiet and sales had already increased over the past month, Mrs Bezar said.

Perrys Bookshop owner Denis Jacques said sales had been "pretty much the same as last year".

The shop had a lot of "fast sales" like magazines, he said, most of which were paid for using eftpos.

Trendez manager Paula Amsler said people had been a little more careful about what they bought over winter but things were now starting to pick up.

In contrast to the dire eftpos figures, Carpet Court owner David McMurtry said the store was experiencing a "resurgence" to the heyday of 2007.

Demand was outstripping supply at the moment, he said, but added that hardly any sales were on eftpos as big ticket items often went beyond the cards' limits.