Newmarket has today released Paymark data for the December 2019 quarter, revealing some impressive financial results for the precinct.
The data shows that spend in Newmarket increased by 43 percent to nearly $198m, with the number of transactions growing by 56 percent when compared to the same quarter in 2018. This includes spend across both new and longstanding stores and restaurants, with a particularly high spike in hospitality which saw the category spend increase by 100.7 percent.
Mark Knoff-Thomas, Chief Executive of the Newmarket Business Association says:
“We’re thrilled to see Newmarket thriving. It’s great to see the hospitality sector get a boost, as the precinct now offers an ever-expanding array of choices. Overall, while profitability per transaction has decreased slightly, this can likely be attributed to the fact that on average, hospitality transactions tend to be lower in dollar value.
“However, the amount of transactions have steadily increased and we expect this trend to continue, as Newmarket becomes more widely recognised as a first-class shopping, dining and entertainment destination.”
All categories in the precinct reported increases, with Apparel & Personal up 29.6 percent; Department Stores and Leisure up 89.7 percent; Home, Hardware and Electronics up 13.7 percent; Fuel & Automotive up 23.9 percent and Groceries & Liquor up by 21.5 percent.
Following the announcement of the Westfield development, many have speculated that while the new development would lead to a substantial rise in spend and foot traffic, it would divert a portion of sales from local businesses within Newmarket.
“The Newmarket Business Association is particularly pleased to note that once we pro-rated Westfield’s contribution out of the quarter, it still showed strong growth with spend up by 5.8 percent, and a 1.2 percent decline in transactions – which indicates higher profitability per transaction. Foot traffic data is also showing a consistent increase across the precinct year on year.
“While many other precincts reported a downturn in sales, this is a stellar performance across the board for Newmarket and reaffirms its position as the precinct of choice,” says Knoff-Thomas.
“In any free market, individual businesses will be reporting different types of results. However, the Paymark data underpins the anecdotal feedback we have received this year – that the vast majority of our merchants are getting positive to excellent results,” concludes Knoff-Thomas.