Orewa businesses are facing tough times as rising costs and reduced consumer spending weigh heavily on local shops.

Hellen Wilkins, Destination Orewa Beach Business Association Manager, highlighted that in the December 2023 Orewa business survey revealed significant challenges. 

Businesses reported 'reduced customer spend' and 'supplier cost increases,' with most performing worse in 2023 compared to 2022.

However, many are optimistic about 2024, expecting better performance next year.

Businesses in the area report that customer spending priorities have shifted due to increased mortgage costs and a higher cost of living, leading to a notable decline in sales. 

"They simply don’t have money to spend right now," said Wilkins.

Despite these difficulties, Wilkins expressed optimism for the future. 

"Once the weather fines up, there will be more foot traffic in town," she noted, hoping that increased visitor numbers will boost retail sales. 

She also mentioned that if mortgage rates start decreasing from February, this could lead to higher consumer spending.

Data from Paymark shows Orewa is faring better than many other town centres. 

Additionally, Orewa has seen a demographic shift, with more young families and first homeowners moving in from the North Shore.

This change is expected to positively impact the local economy in the long term.

In more good news, Destination Orewa has a busy schedule of events planned to attract visitors and stimulate local spending, adding to the community's hope for a more prosperous year ahead.

Watch this space.