While some Kiwis plan to rein in on their spending as a result of the Covid-19 pandemic, others are planning on spending more on home renovations. A consumer spending survey that was carried out in the first week of Alert Level 3 earlier in May, found that 38 per cent of respondents planned to up their spending following the easing of lockdown restrictions.
What are Kiwis planning to spend their money on?
The survey conducted by economist Tony Alexander highlighted what Kiwis were planning on spending their money on, following the end of the strict Covid-19 lockdown period. Nearly 30 per cent of respondents indicated that they were planning on spending the money they were unable to and had planned on spending during the Alert Level 4 restrictions. “Reflecting the recent burger frenzy, 20 percent say they will be spending more on eating out,” Mr Alexander says.
The survey also found that 35.2 per cent of respondents will be spending their money on a home renovation, 29.5 per cent of respondents planned to buy property, and 20 percent said they will be spending more money on improving their garden, keeping the homewares industry moving along post-pandemic.
Stores selling recreational goods such as bikes, kayaks and gym equipment are also likely to be relatively busy post-Covid-19 as the survey allowed respondents to list items under the “Other” category. The common responses included sporting equipment, along with wellbeing and self-improvement services.
What are Kiwis renovating?
After spending weeks locked down in their homes, Kiwis are planning on spending more on home renovations and respondents have also indicated the most commonly sought features to update in their homes. A total of 35 per cent of people are planning to spruce up their property by changing the wallpaper, knocking out a wall, or creating a home office.
The survey results suggest that while the economic fallout from Covid-19 will cause an overall decline in household spending, home renovation retailers, including hardware stores and garden centres, should be relatively busy. “The survey overall tells us that more people plan cutting their spending back than increasing it, but that there could be relative outperformance by retailers selling recreational goods, hardware, dine-in and takeaway food, and gardening supplies such as plants, and tools,” Mr Alexander said.
While spending might be down overall following Covid-19, the survey indicates that Kiwis are planning on spending more on home renovations when restrictions are eased.