TAUPO DISTRICT COUNCIL QUARTERLY REPORT For Period Ending March 2018 Prepared for Jessica Simpson Date April 2018 CONTENTS MARCH 2018 QUARTER RETAIL OVERVIEW 3 WHERE ARE THE RETAIL HOTSPOTS? 4 PREPARED FOR: WHERE ARE THE RETAIL HOTSPOTS IN TURANGI? 5 WHO IS SPENDING AT OUR RETAILERS? 6 WHAT DOES OUR RETAIL CASHFLOW LOOK LIKE? 7 HOW ARE OUR RETAILERS COMPARING TO OTHER AREAS? 8 DOES OUR LOCAL RETAIL MEET THE NEEDS OF CUSTOMERS? 9 HOW DO WE COMPARE TO COMPETITORS? 10 HOW ARE TURANGI RETAILERS COMPARING TO OTHER AREAS? 11 HOW HAS RETAIL ACTIVITY VARIED BY WEEK? 12 WHEN ARE OUR RETAILERS BUSIEST? 13 TAUPO LONG TERM TRENDS 14 HOW ARE WE PERFORMING IN OUR MARKET? 15 HOW MUCH ARE LOCALS SPENDING ONLINE? 16 DATA SOURCE 17 SMALL PRINT Privacy No personal or household data is shown or can be derived, thereby maintaining the privacy of end customers. Copyright This report is protected by the copyright and trademark laws. 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TAUPO COUNCIL QUARTERLY REPORT Page 2 of 17 RETAIL OVERVIEW For Period Ending MARCH 2018 QUARTER QUARTERLY ACTIVITY MARKET SHARE Changes over same time last year Your Share vs Key Competitors SPENDING TRANSACTIONS Market share is your share of spending in the market (yourself and key competitors). $180,387,293 3,665,173 13.3% Your key competitors are based on areas you have p 6.7% p 5.8% chosen, in this case Nelson, Rotorua, Napier, Thames- Spending in your area grew by 6.7% over the same time last year. vs. last year Coromandel, Queenstown territorial authorities Transactions in your area grew by 5.8%. NZ spending grew by 5.6%, and p 0.0% transactions by 5.8% CARDHOLDER ORIGIN FASTEST GROWING STORETYPES CHANGE Fuel in your area had the largest (VS. SAME CARDHOLDER VALUE SPENT IN YOUR IN YOUR AREA vs. last year growth amongst storetypes, up QUARTER CONTRIBUTION COUNCIL 13.8%. LAST YEAR) Fuel p 13.8% 10.4% LOCALS 43.4% $78.36 mn Food and Beverage Services had p IN COMPETITOR LOCATIONS vs. last year the largest growth in Key Food and Beverage Services p 13.7% Competitor locations, up 13.7%. 1.1% ROTORUA 2.3% $4.08 mn p LOYALTY AND OUTFLOW REST OF NZ 3.1% Destination of Locals' Spending 43.6% $78.59 mn CARDHOLDERS p Taupo District 60.2% Taupo residents conducted 60.2% of Rotorua District 3.2% their retail spending in Taupo District INTERNATIONAL 8.5% 10.7% $19.35 mn and 3.2% in the Rotorua District. Rest of NZ 23.5% CARDHOLDERS p They spent 13.1% online. Online 13.1% TAUPO COUNCIL QUARTERLY REPORT Page 3 of 17 WHERE ARE THE RETAIL HOTSPOTS? How does this affect planning? Is it happening where we want it to happen? TOP PERFORMING LOCATIONS CHANGE IN SPENDING Based on percentage change in spending from same period last year Change in spending over same period last year FOR ALL INTERNATIONAL KTHD MANGAKINO RANK LOCATION VALUE OF SPENDING CHANGE IN SPENDING CARDHOLDERS CARDHOLDERS 1 KTHD $3,387,617 20.9% 2 Mangakino $908,264 18.1% 3 Miro/Ashwood $12,114,326 12.6% 4 Turangi $16,799,597 9.2% 5 Rest of Taupo $39,525,603 7.9% 6 Totara Point $1,824,216 5.3% 7 CBD/Spa Road $105,827,670 4.8% TOTAL $180,387,293 6.7% DISTRIBUTION OF SPENDING Split by cardholder location Local Cardholders Rotorua Cardholders Rest of New Zealand International CBD/Spa Road KTHD Mangakino Miro/Ashwood Totara Point Turangi Rest of Taupo 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% TAUPO COUNCIL QUARTERLY REPORT Page 4 of 17 WHERE ARE THE RETAIL HOTSPOTS IN TURANGI? How does this affect planning? Is it happening where we want it to happen? TOP PERFORMING LOCATIONS CHANGE IN SPENDING Based on percentage change in spending from same period last year Change in spending over same period last year FOR ALL INTERNATIONAL INDUSTRIAL INDUSTRIAL RANK LOCATION VALUE OF SPENDING CHANGE IN SPENDING CARDHOLDERS CARDHOLDERS 1 Central $10,956,800 10.3% 2 East State Highway $585,997 -10.1% 3 Industrial $1,765,962 20.4% 4 Mall Precinct $1,301,562 16.6% North East 5 North East $973,637 -11.2% North of River 6 North of River $1,215,638 8.3% TOTAL $16,799,597 9.2% Mall Precinct Central DISTRIBUTION OF SPENDING Split by cardholder location Local Cardholders Rotorua Cardholders East State Highway Rest of New Zealand International Central Industrial East State Highway Industrial Mall Precinct North East North of River 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% TAUPO COUNCIL QUARTERLY REPORT Page 5 of 17 WHO IS SPENDING AT OUR RETAILERS? Is this changing? How appealing are we to visitors/ tourists? SPENDING BY CARDHOLDER LOCATION DISTRIBUTION OF CARDHOLDERS Change in spending over same period last year Including international cardholders CHANGE ON SAME CARDHOLDER AREA VALUE SPENT QUARTER LAST YEAR 2% TAUPO $78.36 mn p 10.4% 44% 43% ROTORUA $4.08 mn p 1.1% 11% AUCKLAND $19.00 mn p 1.3% Taupo District Council Rotorua WELLINGTON $10.49 mn p 2.4% Rest of NZ Cardholders International HAWKES BAY $6.77 mn q -5.5% FASTEST GROWING CONSUMER REST OF NZ $42.33 mn p 5.7% GROUP CARDHOLDERS Based on spending change from the same period last year INTERNATIONAL $19.35 mn p 8.5% International cardholder spending within New Zealand is up 12.5% over the same period lat year, and transactions are up 21.0% p TAUPO DISTRICT COUNCIL TAUPO COUNCIL QUARTERLY REPORT Page 6 of 17 WHAT DOES OUR RETAIL CASHFLOW LOOK LIKE? How much are we leaking to other areas? OVERVIEW OF INFLOW AND OUTFLOW TO/FROM TAUPO DISTRICT THE BREAKDOWN Non-locals include international cardholders LOCALS SPENDING LOCALLY TOTAL INFLOW The total amount spent in your $78.36 mn council area + $180.39 mn NON-LOCALS SPENDING IN YOUR AREA $102.02 mn TOTAL OUTFLOW The total amount local ORIGIN OF INFLOW BY CARDHOLDER LOCATION cardholders spent outside your - $51.82 mn Breakdown of spending in your council local area This figure includes $34.74mn spent in other areas, and $17.08mn spent online" What's coming into your council What's spent outside your council NET INFLOW TO YOUR AREA CARDHOLDER LOCATION YOUR COUNCIL ELSEWHERE IN NZ Total inflow minus total outflow Taupo $78.36 mn $34.74 mn = $128.57 mn Rotorua $4.08 mn $203.81 mn Auckland $19.00 mn $4,714.73 mn Wellington $10.49 mn $1,222.69 mn MARKET PENETRATION Hawkes Bay $6.77 mn $435.62 mn The amount of possible Rest of NZ Cardholders $42.33 mn $6,817.56 mn spending that was spent at = 77.68% International $19.35 mn $764.24 mn local retailers TOTAL $180.39 mn $14,193.38 mn TAUPO COUNCIL QUARTERLY REPORT Page 7 of 17 HOW ARE OUR RETAILERS COMPARING TO OTHER AREAS? Are we keeping pace? Are our retailers maximising the available opportunities? RETAIL CATEGORY CHANGE IN SPENDING AND PERFORMANCE ORIGIN OF CARDHOLDERS Spending change over same period last year Including international cardholders YOU VS. COMPETITOR Local Cardholders Rotorua Cardholders GROUP Rest of New Zealand International YOUR CHANGE ON RETAIL CATEGORY $$ SPEND RANK RESULT SQLY Accommodation ACCOMMODATION $21.95 mn p 4.7% 2 1 Apparel Department Stores APPAREL $6.70 mn p 0.8% 3 1 Electrical / Appliances DEPARTMENT STORES $7.96 mn p 0.3% 3 3 Food and Beverage Services Fuel ELECTRICAL / $3.03 mn p 11.8% 2 2 APPLIANCES Furniture/Flooring FOOD AND BEVERAGE Hardware/Homeware $28.23 mn p 9.8% 3 2 SERVICES Other FUEL $27.54 mn p 13.8% 2 2 Recreational Supermarkets and… FURNITURE/FLOORING $1.31 mn q -13.2% 6 -4 0.0% 20.0% 40.0% HARDWARE/HOMEWA $9.15 mn p 11.7% 2 -1 RE FASTEST GROWING CATEGORIES OTHER $12.00 mn p 5.0% 2 1 Domestic/ International split RECREATIONAL $8.63 mn p 1.1% 5 -1 For ALL For INTERNATIONAL SUPERMARKETS AND Cardholders Cardholders $53.88 mn p 5.2% 3 1 SPECIALISED FOOD HARDWARE/HOMEWA FUEL The competitor group is made up of retailers in Nelson City, Rotorua District, Thames-Coromandel District, RE Napier City and Queenstown District. TAUPO COUNCIL QUARTERLY REPORT Page 8 of 17 DOES OUR LOCAL RETAIL MEET THE NEEDS OF CUSTOMERS? Have we got gaps? Where should be target development? PROPORTION OF LOCAL CARDHOLDER'S SPENDING THAT GOES TO LOCAL MERCHANTS OVERALL LOYALTY High percentages presume that local cardholders are happy with local options RETAIL CATEGORY PROPORTION OF SPENDING DONE LOCALLY Taupo 14.4% ACCOMMODATION 69.3% New Zealand Avg 15.7% Local cardholders spent 69.3% at local Taupo 51.1% merchants this quarter.