Spending across apparel in New Zealand fell by around NZ$12 million in January 2025 compared to the same month last year in seasonally adjusted terms.
This is according to new data from Stats NZ, with the fall adding to an overall slump in yearly core retail spending of NZ$62 million to NZ$5.79 billion in January last month.
Total apparel spending in January was NZ$325 million, which is also down on the prior month by NZ$3 million.
Hospitality, durables and consumables also recorded falls month-on-month, with durables down 2.6 per cent, while hospitality fell by just 0.2 per cent.
Meanwhile, fuel and vehicle retailing, alongside services and non-retail industries, all recorded rises month-on-month, led by motor vehicles at 3.2 per cent.
Seasonally adjusted spending across core retail categories also fell by NZ$86 million in January 2025 compared to the prior month.
According to peak body Retail NZ, the flat sales in January are not helping retailers facing ever-increasing costs.
The latest slip across core retail continues trends the retail sector saw through 2024, Retail NZ chief executive Carolyn Young said.
“While retailers saw some benefit from the customary Christmas rush and the Boxing Day sales, consumers are continuing to be careful with their spending,” Young said.
“Retail NZ members are telling us that their profitability continues to be eroded by big increases in business costs, particularly rates and insurance. Today’s data shows that price increases as a result of inflation and the post-Covid surge in population are not translating into higher incomes for retailers.”
Young said she and her constituents hope to see a further cut in interest rates in next week’s OCR announcement, as well as outcomes from the Government’s new focus on economic growth, “to give consumers more confidence to spend.”