Retail card spending figures for June 2024 show that the retail sector is battling through a long cold winter, Retail NZ CEO Carolyn Young said.
Stats NZ’s latest electronic card transactions show a 4.9 per cent fall in retail spending compared to June 2023. This follows a 1.6 per cent fall in May, compared to the same month of 2023.
Monthly overall transactions have hit their lowest point in June 2024 since March 2022, hitting NZ$6.03 billion (A$5.43 billion). Electronic card transactions have been trending down since May 2023.
Fashion sales were down 0.8 per cent month-on-month in June to $315 million, and have fallen month-on-month since January this year.
“Retail NZ members are telling us that it’s tough to make sales and customers are spending less,” Young said. “At the same time, retailers’ costs are rising with increases in wages, insurance, freight and other business expenses.
“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.”
Retail NZ is currently surveying its members on trading conditions through the second quarter of 2024 (April-June) and indications are that more than 70 per cent of respondents did not meet their sales targets for the quarter.