22 May 2026
The latest retail trade survey from Stats NZ will come as welcome news for the sector, with core retail spending up 6% in actual value for the quarter.
“This is an encouraging result for retailers, with the figures showing the positivity seen in the final quarter of 2025 wasn’t a flash in the pan,” Retail NZ Chief Executive, Carolyn Young, says.
“We’re delighted to see real momentum in several categories, with electrical continuing to standout, up 14.4% in the quarter,” Ms Young says. “We’re also seeing solid growth in furniture and hardware — categories that suggest New Zealanders are investing in their homes again. That’s a good sign for discretionary spending confidence.”
However, the gains are not being felt equally across all retailers or all regions.
Grocery spending is up 4.1% in value but flat in volume, which points to price inflation doing much of the work rather than more shoppers buying more.
“When value is up but volume is flat, it tells us consumers are paying more for the same basket of goods. That’s not the same as a genuine increase in retail activity, and it’s something we’re watching closely,” Ms Young says.
Once again, apparel is a category of concern to Retail NZ, with the actual values flat but volumes down 7.8%.
“That volume decline in clothing is significant. It suggests consumers are either trading down, buying less, or both. For apparel retailers who are already operating on tight margins that’s a difficult environment to navigate, especially with the sector experiencing declines throughout 2025,” she says.
Regionally, Canterbury and Otago are leading the country with growth of 8.7% and 12.3% respectively, likely reflecting the positive contribution from farming and continued recovery in international tourism. Auckland and Wellington both recorded solid growth of 5.8% and 5.6% over the quarter.
Overseas visitor arrivals were up more than 47,000 for March 2026, an increase of 15.1% year-on-year, with that rise in tourist spend making a difference.
“The regional picture is interesting, particularly in the South Island, with tourism helping to lift retail performance. Retailers in those regions will be feeling more optimistic than some of their counterparts elsewhere,” Ms Young says.
Despite the positive headline, Retail NZ cautions the aggregate figures mask significant variation within categories.
“What we’re hearing from our members is that within any given category, some retailers had an excellent quarter, while others really struggled. A 14% rise in electrical spending, for example, doesn’t mean every electrical retailer is experiencing such a big lift,” Ms Young says.
“We’re seeing an uneven recovery across the sector, with some retailers yet to experience a boost, and we don’t want the headline numbers to obscure that reality. The retail sector is a vital part of New Zealand’s economy, and we encourage shoppers to prioritise their spending in their local high streets, so the whole community experiences the benefits.”
For further information or to set up an interview please contact Carolyn Young on 021 449 452
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