Total retail sales across New Zealand, including fuel and automotive, have fallen by 4.25 per cent in February 2025 compared to February 2024.
The data comes from new Stats NZ electronic card transaction data for February 2025, which also shows that the total number of transactions were down 2.7 per cent in a still struggling economy.
Across total core retail – excluding fuel and automotive which were both down by around 12 per cent on last year – was down 3.1 per cent.
Apparel sales in particular were down 3.9 per cent to NZ$273 million (~A$247 million).
In month-on-month terms, total actual sales across core retail were down by NZ$529 million to NZ$5.33 billion in actual terms, with apparel sales dropping by NZ$50 million to NZ$273 million.
In seasonally adjusted terms, which excludes estimated seasonal fluctuations, core retail sales were up by NZ$28 million to NZ$5.82 billion.
Seasonally adjusted apparel sales were up by NZ$4 million to NZ$330 million.
According to peak body Retail NZ, local retailers are hoping the Federal Government’s new focus on growing tourism will provide positive benefits for the struggling sector.
“International tourism traditionally hits its peak in February,” Retail NZ CEO Carolyn Young said. “We know that tourist arrivals are only at about 80 per cent of pre-pandemic levels. In particular, the cruise sector is down 20-25 per cent on last season, which accounts for some of the decline.
“That means thousands fewer feet on our streets. Brick and mortar retailers rely on foot traffic to generate sales so the lower tourism numbers are definitely being felt. Any boost in tourism from here would be welcome relief to retailers”
Growing unemployment is also impacting shopping habits and contributing to retailers’ challenges, Retail NZ reported, adding that consumer confidence is critical to support an increase in discretionary spending and having confidence in your job security is a factor that is currently impacting consumer buying decisions.