Barometers of a pandemic: Booze, betting, beauty, bars

• Author: OPINIONDiana Clement@DianaClement
• Published date: 07 November 2021
• Publication title: Herald on Sunday

It’s booze and betting that are up in lockdown, and beauty and bars (cafes and restaurants) are down.

For the month from September 15 to October 15, the total New Zealand consumer spend was down by 27 per cent compared with the same period in 2020, largely driven by the Auckland lockdown and the corresponding impact it has on domestic tourism, says Justin Lester of Dot Loves Data, about the numbers sourced from Eftpos New Zealand.

That wasn’t the case for booze spending, which spiked on the Tuesday as we first headed into lockdown: 585 per cent in Auckland, 500 per cent in the capital and 413 per cent in Christchurch. Fortunately for our nation’s health and wealth, the booze spending has receded since.

I like to point out that the demon drink, although enjoyable, is expensive and many households blow thousands of dollars a year on it. Three bottles of wine a week at $15 each adds up to $195 a month. Invested in a KiwiSaver growth fund returning 7 per cent per annum, and taxed at 28 per cent, it adds up to approximately $304,000 over 40 years of working. That’s approximate because the tax calculations are a bit more complex and growth fund returns do fluctuate.

For that month from September 15 to October 15, betting spend was up nationally by more than 100 per cent in the second half of October, largely driven by Lotto’s Powerball jackpots, says Lester. It’s fine to have a flutter occasionally. But I used the same Calculate.co.nz website and worked out that your Triple Dip ticket spending at $16 a week invested in KiwiSaver could grow to approximately $108,000 if invested over your working life as additional contribution.

Unsurprisingly, Lester says Auckland beauty treatment spending is down currently by 96 per cent from the same time last year. What I’d give for a haircut right now and I know I’m not alone. In the days leading into lockdown, it spiked hugely, up by more than 1000 per...