26 August 2026

Monday’s Retail Trade Survey from Stats NZ shows an economy running at different speeds, with a handful of high-performing sectors masking a real-terms squeeze for many store owners.

With annual inflation hovering above 4%, categories growing in low single digits are effectively seeing sales contract in real terms.

“A handful of strong sectors are delivering standout performances, but behind those numbers, a significant portion of retail is bumping along below inflation,” says Retail NZ Chief Executive Carolyn Young.

Electrical and electronic goods lead the way, up 23.5% compared to the 2025 June quarter ($213m) to $1.12 billion. “Electronics have posted impressive results for several quarters,” Ms Young says. “We’re likely seeing the natural replacement cycle from the COVID tech buying spike, alongside strong consumer interest in AI-integrated devices.”

Home and health also saw solid gains. Pharmaceutical was up 13.1% whilst hardware and building supplies rose 9.5% and furniture and housewares grew 9.1%.

“Major arrivals like IKEA and a growing appetite for designer furnishings are clearly fueling momentum in home upgrades,” Ms Young says.

However, core sectors like supermarkets (+2.6%), recreational goods (+2.7%), and department stores (+0.6%) failed to keep pace with inflation. Meanwhile, fuel spending spiked 25.1% ($550m) to hit $2.74 billion.

“High nondiscretionary costs at the pump continue to eat into household budgets, limiting what shoppers have left for discretionary retail,” Ms Young adds.

Looking at the regions, Auckland will welcome its 6.8% increase, while Canterbury, Otago, and Southland are helping offset weaker growth across the rest of the South Island.

Even within regions, the picture remains mixed. Recent data from POS provider Lightspeed tracking card terminal transactions shows localised dips, with areas like Queenstown experiencing a notable drop in retail spend.

Viewed together, the Stats NZ survey and terminal-level data point to a landscape of mixed fortunes across both sectors and regions. One where retailers are undeniably having to work harder than ever for every dollar. What retailers are looking for from all parties this election is to solve the cost-of-living issues, including generating economic growth, bringing inflation under control, lower unemployment and thriving high streets.

For further information or to set up an interview please contact Carolyn Young on 021 449 452

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