Quarterly retail sales fall 2.8 per cent in NZ

Stats NZ’s latest Retail Trade Survey shows that total retail sales fell 2.8 per cent in the September quarter compared to the same quarter of 2023. 

Core retail sales - excluding motor vehicles and parts, and fuel - were down 1.7 per cent.

Ten of the thirteen core retail industries recorded falls - including fashion and department stores - with the only lifts recorded in supermarkets, liquor and pharmaceutical and other store-based retailing.

Clothing footwear and accessories sales fell 4.4 per cent in the latest quarter to a total of NZ$1.1 billion (~A$990 million), while department store sales fell 6.1 per cent to NZ$1.5 billion.

Alongside these numbers, Stats NZ also confirmed that the total volume of seasonally adjusted retail sales overall was NZ$24 billion, down 0.1 per cent quarter-on-quarter.

The total value of seasonally adjusted retail sales was NZ$30 billion, down 0.7 per cent from the last quarter, or by NZ$209 million.

When it comes to volumes quarter-on-quarter, the largest lifts were seen in motor vehicle and parts retailing (up 4.3 per cent) and electrical and electronic goods retailing (up 4.6 per cent).

The largest falls were seen in supermarket and grocery stores (down 1.3 per cent), food and beverage services (down 2.1 per cent), and department stores (down 2.5 per cent).

Retail NZ CEO Carolyn Young said these latest statistics show that the retail sector is continuing to face challenges.

“This aligns with our recent Retail Radar quarterly survey which found that 70 per cemt of survey respondents did not meet their sales targets in the July-September quarter,” Young said. 

Although there are early signs that the economy is starting to improve, Retail NZ added that these were not enough to encourage consumers to spend more during the quarter.

“As we look towards the OCR update on Wednesday, we hope that will provide consumers with increased confidence in the future,” Young said.

“The next few weeks are critical for retailers with key sales periods including the Black Friday sales and Christmas promotions. Many retailers rely heavily on strong sales during this period to ensure they have a buffer for quieter months. The turnaround in the economy can't come soon enough for the retail sector.”