New Zealanders have cut back on apparel spending in April this year as other core retail categories see only modest growth.
This comes from the latest electronic card transaction data from Stats NZ, which overall indicate that consumers across the ditch have made some cutbacks in the wake of the current fuel crisis.
The card transaction data for the month of April shows the actual spending in core retail is up 1.4 per cent compared to April last year, though it’s down slightly compared to last month. Apparel spending fell the most by 2.9 per cent, with hospitality up 1.1 per cent, durables up 1.9 per cent and consumables up 1.7 per cent.
In seasonally adjusted terms, which removes major fluctuations such as the increase in prices in fuel, shows apparel spending is still the only category recording a year-on-year spending slip.
In trend terms, apparel spending has been declining steadily since November last year, and is significantly down from April 2024. Total core retail spending has also been declining slightly in trend terms in recent months.
Retail NZ CEO Carolyn Young said these figures indicate that while New Zealanders’ budgets have taken a hit from the increase in fuel prices, they are still out in stores buying the essentials.
“There were slight increases in actual spending in both consumables and durables, which tells us that shoppers are still buying what they need, rather than cutting their spending entirely,” Young said.
“However, the consumables spend is well below the inflation rate and is the lowest year-on-year increase for the last 12 months, which indicates households are making their savings by reducing their grocery spend,” she added.
“Whether it’s by leaving treats on the shelves or choosing the cheaper brands or specials instead of the family favourites, Kiwis are finding ways to make their money go further.”
Retail NZ did point out that the biggest blow was to the apparel sector.
“While the amount being spent on apparel did not fall as dramatically as we saw in March, it is still a significant dip for a sector that’s been struggling so much over the past few years,” Young said.
“It tells us consumers’ discretionary income is continuing to fall, and the savings they’re making by shopping smarter at the supermarket are only just enough to get by, as the cost of living continues to rise.”