15 September 2026
Retail NZ, the peak body representing the retail sector, says Kiwi households are remaining cautious as fuel costs continue to bite, with the latest Electronic Card Transaction data from Stats NZ showing spending was flat (0.0%) compared to August last year.
Figures released today show actual core retail card spending for August was flat with no change compared to the same month last year, coming off the back of a strong 3.5% lift in July. Total retail card spending was weak, up 0.8% held up by fuel spend which – while significantly down on the double-digit growth we saw between March and May – continues to grow at 4.4% compared to August last year.
“We experienced a uniquely strong July buoyed by a public holiday (Matariki) and the men’s Football World Cup gave a boost to hospitality, while an extra trading weekend and flat petrol prices gave shoppers more opportunity to spend, August represents a return to something more cautious” Retail NZ Chief Executive, Carolyn Young, says.
“Actual monthly spending on durables, which had performed strongly in July, was completely flat (0.0%), while hospitality was down 1.8%. Consumables only saw a 1.4% increase on August 2025, well below the rate of inflation.”
“Another sharp decline in apparel spending (2.5% year-on-year) will be a blow to those retailers, who would have hoped that July was the start of a turning point in terms of growth in the sector,” she says.
Ms Young says there’s several reasons shoppers may have been more reluctant to get out their wallets last month; the strongly-signaled 0.25% OCR increase in early September, a rise in fuel costs – which have averaged more than $3 a litre for Regular 91 since the end of July, sustained high unemployment, and some pre-election uncertainty.
“Whilst some parts of the economy have been showing positive signs, retail has been variable, with a number of economic pressures meaning consumers are hesitant to routinely make those discretionary purchases many retailers rely on. People may also be reining their spending after letting their hair down during July,” Ms Young says.
“We can see this reflected in ANZ’s latest consumer confidence figures, which remain stuck below 100 in pessimistic territory. The upcoming General Election may also have encouraged some households to adopt a ‘wait-and-see’ approach, with polls remaining tight.
However, Ms Young says tourism numbers returning to pre-covid levels for July will be encouraging for retailers as they enter spring, when there tends to be a boost spending on apparel and outdoor goods.
“Retailers will be hoping a spring uptick and increasing tourist numbers can sustain the sector until the holiday season sales get underway in a couple of months’ time. We’re heading into a crucial time of year for our stores, as many rely on strong summer sales to sustain them through quieter months later in the year,” Ms Young says.
To set up an interview with Retail NZ CEO Carolyn Young, please contact her directly on 021 449 452
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