New Zealand’s apparel market has seen a notable swing to year-on-year growth following a stark slip in June.
This is according to seasonally adjusted electronic card transaction data from Stats NZ, which show spending on apparel growing by 1.1 per cent in July 2026 compared to the same month last year. This followed a 4.9 per cent slip in June 2026.
Year-on-year fashion spending in New Zealand has been on a rollercoaster, dipping in June, rising in May, dipping in April and March, rising in February and falling in January.
This trend is similar in actual terms, which will include seasonal fluctuations. In actual terms, year-on-year fashion spending grew by 2.5 per cent in July, fell by 4.2 per cent in June, was slightly down by 0.8 per cent in May and slipped 2.9 per cent in April.
The uplift in fashion spending in July added to a 3.5 per cent increase in core retail spending in actual terms – which also includes consumables, durables and hospitality, but excludes services, vehicles and fuel.
The 3.5 per cent lift in core retail spending followed a 0.4 per cent lift in June. All four categories saw growth.
Retail NZ’s advocacy, advice and communications manager, Denise Garland, said the lift in core retail spending is really encouraging for retailers.
“Falling fuel prices meant households had a little bit extra in their pockets, and we can see that Kiwis took that opportunity to treat themselves,” Garland said.
“Both durables (4 per cent) and hospitality (4.5 per cent) experienced significant rises in spending activity, which are sectors that tend to see an uptick when consumer confidence is on the up.
“Even apparel had a boost of 2.5 per cent, the biggest year-on-year increase in at least two years, and it's also the biggest bump in spending from June to July since 2020.”
The rise in hospitality spending in particular shows just how important events are for retail. Garland said the men’s FIFA World Cup likely encouraged people to head out to abrs and restaurants during the matches.
“Events are hugely important to retail, because extra foot traffic in our town and city centres also means more people are out browsing in our high streets.”
But Retail NZ did not that it’s not clear whether this is a temporary spike amid a unique combination of circumstances, or a broader, positive shift in consumer confidence.
“July was unique in that not only was there a major international sporting event for the first half of the month, but there was also a public holiday – Matariki – and there were five Fridays, which is typically the weekday where we see the biggest spend in retail,” Garland said.