16 October 2026

Retailers are entering the peak trading season under real pressure, with only a minor rise in card spending last month, Retail NZ Chief Executive, Carolyn Young.

Stats NZ’s latest Electronic Card Transaction data for September shows actual core retail spending rose just 0.1% compared to the same month last year, and when you include fuel (up 11.1%) and vehicles, the rise is still only 0.9% year-on-year.

Retail NZ is the peak body representing Kiwi retailers, and its head, Carolyn Young, says these latest numbers show most New Zealanders are only spending on what they need, and at a time when inflation is running at 4.1%, retailers are falling behind.

“Fuel was up 11.1% due to the huge price rises we’ve seen at the pump, which is where most of that lift in the total retail spend has come from.” Ms Young says.

“The current fuel prices, along with power, insurance, and other essential bills are not only impacting households, they’re also increasing business costs, raising overheads and squeezing retailers’ margins.”

Ms Young says shoppers are just focused on buying the essentials and aren’t spending elsewhere.

“Consumables, which is food and alcohol, is up 3% compared to the actual monthly spend in September last year, and is one of only two core retail industries to see a lift – though it’s still below the rate of inflation. Durables saw a marginal increase in spending, with a 0.3% lift.

“Apparel spending fell a huge 5.2% while hospitality was down 4.4%, which tells us Kiwis are not making those discretionary purchases. The New Zealand apparel industry works hard to provide an amazing range of clothing and footwear for consumers, but it has been an extremely tough couple of years for the sector. We would encourage shoppers to get out and support stores in their local high street this festive season,” Ms Young says.

While there is some good news in that the actual core retail spending figures for the September quarter shows a 1.2% rise, much of that will be down to the positive spending in July.

“Consumer concerns around the high cost of living is likely also being compounded by uncertainty heading into the election, with political polls suggesting the election could go either way,” Ms Young says.

“Retailers will be hoping that Kiwis will spend big in the Christmas quarter.”

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

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