New data from Stats NZ show that apparel spending has fallen by 2.3 per cent in October 2025 compared to the same month last year, in actual terms.
Actual monthly spending in apparel hit NZ$332 million, down from NZ$339 million in October 2024. Stats NZ spending data is based on electronic card transactions, differentiated by industry.
Despite the slip year-on-year, month-on-month sales across apparel lifted by NZ$40 million between September and October 2025 – a jump of 12 per cent.
Prior year trends indicate apparel is in for a major jump in sales in New Zealand in the lead up to Christmas in prior years. Between October 2024 and December 2024, apparel sales rose by 33 per cent, hitting a yearly peak of NZ$510 million in the final month of last year.
Compared to December 2023, December sales in 2024 were down by NZ$26 million.
While year-on-year spending in apparel is down, overall sales across the core retail sector – minus services and car retailing – was up by 1.2 per cent, hitting NZ$6.3 billion. This was predominantly driven by a 4.3 per cent boom in consumables.
Durables – appliances, furniture, electronics, etc – had the steepest drop in year-on-year spending, down 2.5 per cent.
In seasonally adjusted values, total core retail spending lifted just 0.2 per cent, with apparel spending down by 0.6 per cent in year-on-year terms.
Retail NZ CEO Carolyn Young said it is almost a relief to continue to see some positive news in retail. But she did spotlight how the uplifts in consumers and hospitality (up 0.7 per cent), outshone durables and apparel.
“So while there is some good news there, more is needed to share the benefits right across retail,” Young said.
“As we head into the important Black Friday, Christmas and Boxing Day sales period, it’s going to be important to see continued improvements across the whole sector. We know businesses have been hanging in there waiting to see an improvement in the economy.”
With inflation in New Zealand currently at 3 per cent, the actual card spend in October is below the current rate of inflation, Young pointed out.
“The retail sector remains under significant strain, with businesses advising that they are absorbing as many cost increases as they can, working harder than ever as margins are being squeezed, creating significant challenges to remain open,” she said.
“We are still seeing liquidations and closures across the sector, although some regional areas are showing signs of improved trading on the back of strong dairy prices.
“We remain hopeful that the Reserve Bank’s recent OCR cut to 2.5 per cent signals potential relief ahead. However, retailers are not noticing any immediate change in consumer spending.”