For many businesses, particularly in the retail sector, the last quarter of the year represents an opportunity to make gains in what has been a difficult year. While a trend towards local-oriented spending dominated consumer buying behaviour post-lockdown, the question as to whether this would continue in the lead up to Christmas has been looming. 

Despite earlier concerns that people might be more stringent with their spending this year due to widespread job insecurity and anticipated economic downturns, it seems that we are spending more than ever. Stats NZ reported recently that retail sales had increased by the biggest margin in 25 years in the September quarter, mainly towards major household items, vehicles and unsurprisingly, groceries.

There doesn’t seem to be any sign of things slowing down. In November, Singles Day sales, a historically Chinese phenomenon, and Black Friday and Cyber Monday sales (historically US phenomena), have taken off like never before in New Zealand - an indication that the spike in retail sales is continuing on an upward trajectory, and consumers impulsive behaviour and short-term orientation towards what they spend money on is still alive and well. 

Contrasted against our desire to buy and get a bargain, broader conversations around fairness and equality have continued. Pay gaps between CEOs and workers; living wage versus minimum wage; and support for the investment in skills and capital of New Zealanders, all represent the changing perspectives around the role and expectations of businesses in our communities and in our society.

This year, some New Zealand owned companies, including Wellington-based sustainable underwear company Nisa, CaliWoods eco-products, and fashion designer Juliette Hogan, made the decision to take a stand against Black Friday, with some going as far as to ‘boycott’ the day, and others donating some or all of the profits made on the day to charity organisations, in an effort to encourage people to spend in a considered and conscious way. 

These businesses are going against the grain of fast-fashion, excessive consumption, and impulsive spending, and paving the way to a more sustainable model of doing business that encourages people to make decisions based on their own core values. 

For consumers, there appears to be a friction between a deep desire to support others and to spend money at local, purpose-driven, community-oriented businesses, and an innate tendency or need to seek out value-for-money items. 

Businesses inevitably have a choice to make as we enter into the last month of the year. This choice could further increase the tension in consumer mindsets, or reduce it. 

Will businesses choose to remain true to their core values and actively cease to engage in activities that are not aligned to them?

Or will consumer demand for discounts and low prices ultimately dominate business decisions?