The latest spending data from Worldline shows continued woes for retailers in September, according to peak body Retail NZ, with all regions across Aotearoa showing a decline in spending year on year.
The data for September 2024 shows consumer spending with Core Retail merchants (excluding hospitality) in its payments network was down 3.4 per cent compared with September 2023, hitting NZ$2.84 billion (A$2.58 billion)
This continues the trend of recent months, with sales falling 0.5 per cent in August 2024 compared to the prior year, with July spending down 2.6 per cent year-on-year.
Retail NZ added that this also aligns with its recent Retail Radar quarterly survey, which showed that 71 per cent of members failed to meet sales targets last quarter and 42 per cent of retailers are uncertain if they can survive the next 12 months.
“We had been hoping that the recent cuts in the Official Cash Rate (OCR) and the tax breaks in August would provide some impetus for consumers to get back to the stores,” Retail NZ CEO Carolyn Young said.
“Speaking to retailers this week we are hearing of some pretty tough trading numbers, which is putting pressure on the last quarter of the year with retailers needing to see a significant turnaround in sales.
“The data shows us just how difficult it is in some regions with Southland down 11.8 per cent, South Canterbury down 7.4 per cent and Bay of Plenty down 5.5 per cent.
“Our members are telling us that cashflow is tight, with many businesses not sure if they have enough cash to buy forward stock, impacting their ability to stay open.”
Worldline NZ chief sales officer Bruce Proffit said the decline for the month exaggerated the trend as the extra two days in 2024 were the typically weak trading days of Sunday and Monday.
“Overall, the trend appears similar to that of August – namely, a seasonal pick-up in spending is occurring but at a level that remains slightly below the spend of 2023,” Proffit said.
“There was, as usual, variation within the month but weather effects appear to be a major factor. For example, spending was down more on 2023 in Auckland/Northland in the third week of September, but weather data shows this was a relatively wet and cold week.
“Spending was not so far below 2023 levels in Auckland/Northland in the last week ending Friday, which was also a relatively cold and wet seven days last year."