Prepare for Boxing Day Sales: Tips for Smart Shoppers

As the Boxing Day sales approach, Consumer NZ is advising shoppers to prepare wisely to maximize their savings and protect their rights. With pre-Christmas spending slightly down compared to last year, many consumers are looking forward to the post-Christmas sales to find bargains. Last year, New Zealanders spent nearly $68 million on Boxing Day alone.

Jessica Walker, the campaign manager at Consumer NZ, emphasized the importance of distinguishing between wants and needs. She encourages shoppers to establish a budget before venturing into stores, aiming to avoid the often regrettable “buy-now-regret-later” scenario. Walker also stressed the value of researching potential purchases, particularly given the frequent fluctuations in prices, which can make genuine discounts hard to discern.

Understanding Consumer Rights

Walker pointed out that misleading customers about regular prices violates the Fair Trading Act. She urged shoppers to be cautious of extended warranties, suggesting that most consumers are already protected under the Consumer Guarantees Act.

“Retailers often push hard for extended warranties, especially when items are on sale,” Walker explained. “Ask what an extended warranty covers that the Consumer Guarantees Act does not. You may find the coverage is minimal.” The act protects consumers for a reasonable duration, not limited to the manufacturer’s warranty period. If a product fails, customers are entitled to a refund or exchange based on the issue at hand.

Walker clarified that the protections offered by the Consumer Guarantees Act apply equally to sale items and full-priced goods. Signs stating “no refunds or exchanges on sale items” can be misleading. “Just because you bought something on sale does not mean you’re forfeiting your consumer rights,” she added. Although retailers are not obligated to issue refunds for a change of mind, they must address faulty products.

If a Boxing Day purchase turns out to be defective, consumers are entitled to a resolution, and original packaging is not necessary for returns. Should shoppers encounter difficulties obtaining redress at the store, they can file complaints with the Commerce Commission or pursue the matter through the disputes tribunal for a fee of $61.

Avoiding Digital Traps and Maximizing Value

Walker cautioned against “dark patterns” in online shopping, which are tactics designed to exploit consumers’ fear of missing out (FOMO). Techniques like countdown timers and alerts about dwindling stock can pressure shoppers into spending more than they intended.

“It’s crucial to remember that a steep discount or a high-end product does not automatically equate to a good deal,” she advised. Consumer product tests often reveal that the most expensive items are not necessarily the best.

Additionally, shoppers should be mindful of using gift cards. Starting in March 2024, gift cards will be required to have an expiry date of at least three years from the date of sale. Until then, Walker recommends keeping track of expiry dates, as many gift cards come with short validity periods. “Our research indicates that approximately $10 million worth of gift cards go unspent each year,” Walker noted. She encourages consumers to locate any unused gift cards and utilize them to avoid inadvertently gifting money to retailers.

Despite the allure of the last major sale of the year, Walker reminds shoppers to only buy what they truly need or want. “The first sale of 2026 is just around the corner,” she pointed out, suggesting that patience may yield better deals.

The backdrop to this advice comes as New Zealanders face ongoing economic pressures. Recent transaction figures indicate that Christmas spending for the first three weeks of December was just over $3 billion, a slight decrease from previous years. According to a survey of nearly 1,100 Westpac customers, 73 percent expressed concern about the cost of living, a sentiment that remains largely unchanged from last year.

Additionally, a survey by MYOB revealed that many respondents are turning to side jobs or incurring debt to afford gifts. Over half plan to spend roughly the same amount on gifts as last year, while 42 percent feel financially worse off. The latest statistics from StatsNZ show food prices remain high, having surged 4.4 percent compared to last year, despite a recent dip in the cost of some produce.

As Boxing Day approaches, shoppers are encouraged to approach sales with caution and informed decision-making to ensure they enjoy the benefits of their purchases while protecting their consumer rights.