Retail spending across New Zealand lifted by 0.6 per cent in October 2024 compared to last month, driven by a small bump up in the apparel sector, according to Stats NZ’s latest Electronic Card Transaction report.
Across the core retail industries - which include consumables, durables, hospitality and apparel - spending also lifted by 0.6 per cent, or NZ$35 million (or A$31.7 million).
Despite the lift in apparel sales month-on-month, the sector recorded no movement year-on-year in October.
Total core retail sales year-on-year fell by NZ$5 million to NZ$5.750 billion, with total retail sales, including fuel and vehicles, down 1.1 per cent year-on-year. This follows a 5.6 per cent fall in September, compared to the same month of 2023.
Despite the fall across all retail (excluding services), the number of transactions rose 1.1 per cent compared to October 2023, showing that consumers were spending less on each transaction.
Retail NZ CEO Carolyn Young said the latest spending figures for October 2024 show that the retail sector is continuing to face challenges.
“This aligns with our recent Retail Radar quarterly survey which found that 70 per cent of survey respondents did not meet their sales targets in the July-September quarter,” Young said.
Regarding month-on-month lift overall, Retail NZ cited the incoming peak trade period for the bump up, where transactions increase slightly ahead of Black Friday and Christmas trading.
“The next few weeks are critical for retailers with key sales periods including the Black Friday sales and Christmas promotions,” Young said.
“Many retailers rely heavily on strong sales during this period to ensure they have a buffer for quieter months, so we hope that consumers will respond to improving economic conditions with increased confidence.”