Fashion retailers in New Zealand have reaped a 1.1 per cent sales uplift in September month-on-month, driving an overall lift in core retail industries.
This is according to electronic card transactions tallied and scrutinized by Stats NZ.
Apparel sales were up by NZ$3.6 million (A$3.26 million) or by 1.1 per cent, hitting a total of NZ$318 million in September. This drove core retail spending to bump up by 0.3 per cent in September to NZ$5.7 billion, which was also driven by a NZ$12 million boost in hospitality and a NZ$4.1 million boost in consumables.
The month-on-month momentum for apparel is likely just a glimmer of hope as quarterly and year-on-year sales continue to fall. In quarterly terms, apparel sales were down 2 per cent (NZ$19 million), with yearly sales down NZ$15 million, or 4.5 per cent, between September 2023 to September 2024.
Overall spending in the core retail industries decreased NZ$91 million (0.5 per cent), with year-on-year spending down by NZ$116 million, or around 2 per cent.
Including fuel and automotive, total retail flatlined month-on-month and plummeted by 0.7 per cent year-on-year, and 4.4 per cent quarter-on-quarter.
“We have been speaking to a number of retailers over September and these numbers reflect the difficult sales environment that we are hearing about,” Retail NZ CEO Carolyn Young said. “While the economic numbers are improving it will take some time for consumers to feel that they have additional money in their wallet.
“Consumer confidence is key right now and retailers are hearing that consumers are worried about their job security and only purchasing the essentials.”
The September results come before the recent 50-basis point Official Cash Rate cut by the New Zealand Reserve Bank. Young said that until consumers see changes in their mortgages, loans or rent, they will continue to keep their wallet firmly in their pocket.
“We are certainly hoping that there will be a lift in consumer confidence before the critical Christmas sales period.”