New Zealand’s apparel market has seen the largest lift in spending growth month-on-month compared to other retail categories.
This is according to new electronic card transaction data from Stats NZ, which reveal that apparel spending bumped up by 1.8 per cent between July and August, hitting NZ$340 million last month. This is also NZ$3 million above the apparel spend in August 2024, however it is below the yearly peak of NZ$349 million in December 2024, and is well below August 2023 apparel spending of NZ$375 million.
The lift in apparel spending from July to August added to a 0.9 per cent lift in core retail to NZ$6.26 billion, which excludes fuel, vehicles and services. Hospitality recorded the second-highest monthly lift of 1.4 per cent, with durables and consumables growing less strongly at 0.5 per cent and 0.3 per cent respectively.
While it is too soon to say that the retail sector has turned a corner, Retail NZ CEO Carolyn Young said the new data from Stats NZ suggests that retailers may be starting to see some green shoots.
The 0.9 per cent increase across total core retail is the third consecutive monthly increase.
Some of the increase may be attributed to increasing prices, but the continued spending increase suggests that a turn-around may be starting for the embattled retail sector.
“We’re pleased to see there has also been a small increase in the number of transactions, suggesting that consumers are bringing their cards out a little more often,” Young said, adding this will hearten NZ retailers as they prepare for a traditionally busy Christmas season.
“We are hoping this will give retailers confidence to buy stock and retain staff in the run up to the end of the year. Consumers are continuing to be careful with their spending but we want to see these improvements continue during the coming months.”