The total volume of fashion sales in New Zealand has fallen by NZ$55.2 million in the March 2026 quarter compared with the December 2025 quarter.
This is according to new figures from Stats NZ, with these figures being adjusted for price inflation and seasonal effects like Black Friday sales and Christmas.
The clothing, footwear and personal accessories industry saw the largest fall, more than double the second-steepest sales volume drop being recreational goods, which fell by NZ$21 million.
These falls offset total growth, with the total volume of all retail sales in New Zealand increasing by NZ$232 million (or up by 0.9 per cent) between December and March quarters in seasonally adjusted terms.
“Total retail activity rose at a similar pace to the December 2025 quarter,” economic indicators spokesperson Michelle Feyen said.
“The increase in activity this quarter was mainly driven by supermarket and grocery stores; hardware, building, and garden supplies; accommodation; and pharmaceutical and other store-based retailing.”
Ten of the 15 retail industries had higher retail sales volumes in the March 2026 quarter, compared with the December 2025 quarter.
The figures come from a retail trade survey conducted by Stats NZ, which also shows that the total value of seasonally adjusted retail sales was $32 billion, up 2.2 per cent (or NZ$683 million), with the total value of actual retail sales lifting by $32 billion, up 6.1 per cent ($1.8 billion) compared with the March 2025 quarter.
Peak body Retail NZ welcomed the overall news, but pointed out that not all retailers are winning.
Retail NZ CEO Carolyn Young said the overall result 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.
“We're delighted to see real momentum in several categories, with electrical continuing to stand out, up 14.4 per cent in the quarter," Young said. “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 per cent 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," Young said.
As for clothing, footwear and accessories, the actual values in the industry were flat but volumes down 7.8 per cent.
"That volume decline in clothing is significant,” Young said. “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.”
Regionally, Canterbury and Otago are leading the country in terms of total retail values, with growth of 8.7 per cent and 12.3 per cent respectively. This likely reflects the positive contribution from farming and continued recovery in international tourism. Auckland and Wellington both recorded solid growth of 5.8 per cent and 5.6 per cent over the quarter.
Overseas visitor arrivals were up more than 47,000 for March 2026, an increase of 15.1 per cent 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," Young said.
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 per cent rise in electrical spending, for example, doesn't mean every electrical retailer is experiencing such a big lift," Young said.
“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.”