New Zealand's retail sector has suffered a 3.8 per cent fall in spending compared to April 2023 according to the latest Electronic Card Transaction data from Stats NZ, with Retail NZ CEO Carolyn Young saying this proves that NZ retailers are continuing to battle strong headwinds.
The overall fall in April follows a 2.3 per cent fall in March, compared to the same month of 2023.
Spending on fashion fell by around NZ$27 million (A$24.72 million) year-on year to NZ$317 million - or 7.8 per cent.
Young said Retail NZ members are saying that it’s tough to make sales and that customers are generally spending less.
“At the same time, retailers’ costs are rising with increases in wages, insurance, freight and other business expenses,” Young said. “Retailers experienced tough trading conditions in 2023 so we are comparing off a low base. Further decreases in sales are eating into margins and profitability.”
In month-on-month terms, apparel recorded the largest percentage fall of 1.7 per cent in April compared to March, down by around NZ$5.7 million. The largest by dollar value fall was durables, down NZ$11 million (0.7 per cent).
Fuel spending was down by NZ$6.1 million (1.1 per cent), while consumables was down NZ$9 million (0.3 per cent).
Meanwhile, non-retail and services categories both recorded large increases, up 2.2 per cent and 6.8 per cent respectively - or NZ$47 million and NZ$24 million respectively.
Non-retail includes medical and other health care, postal and travel, while services include repair and maintenance, personal care and funeral.
The total value of electronic card spending, including the two non-retail categories, increased from March 2024, up $85 million or 0.9 per cent.
In actual terms, cardholders made 160 million transactions across all industries in April 2024, with an average value of $55 per transaction. The total amount spent using electronic cards was $8.8 billion.
Retail NZ added it is hoping the promised tax cuts in the upcoming NZ Budget will lead to a lift in consumer confidence and spending.
“The indications of targeted focus, including investment in police, is critical to fight the current wave of retail crime so we will be looking forward to hearing more about this," Young said.