HP confirms strong retail sales

By Phil Boeyen, ShareChat Business News Editor

Tuesday 19th March 2002

The strength of the domestic retail sector has been underlined by computer firm Hewlett-Packard, which is claiming a positive start to the year despite forecasted international market pressures.

The business is reporting strong sales in the consumer PC and peripheral market in January and February, with sales ahead 27% compared to the same time last year.

Local general manager of consumer business, Michael Carden, says the results are extremely encouraging.

"January and February are traditionally quiet months for the retail market, particularly in the IT sector. In addition, a number of commentators were last year forecasting a depressed international market, which may impact on this economy.

"However, it appears that not only has New Zealand weathered the storm but so has the IT sector."

Mr Carden believes the strong sales are based on a number of factors, including purchasing cycles.

"We're seeing more second time purchasers of PCs. Many people bought their first PC and printer around five years ago.

"There have been many technological developments since then, such as built-in CD writers, improvements in colour printing and widespread use of scanners. As a result consumers are now upgrading to get the latest and greatest equipment."

Mr Carden the product and technical advances and the positive feeling in the New Zealand economy seem to have happily coincided.

New Zealand's booming domestic economy has led a number of commentators to predict the Reserve Bank will move to a tightening bias when it makes its Monetary Policy Statement tomorrow although interest rates are not expected to rise until May.

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