New retail trade survey data from Stats NZ is showing an economy running at different speeds, with fashion spending growth sitting below current inflation.
Actual clothing, footwear and accessories sales in the June 2026 quarter hit NZ$1.28 billion, which is up 3.4 per cent compared to the same time last year and up the same amount quarter-on-quarter. The yearly jump is below current inflation in New Zealand of 4.1 per cent.
Just a handful of retail categories saw growth above annual inflation. Peak body Retail NZ noted that categories growing in low single digits are effectively seeing sales contract in real terms.
“A handful of strong sectors are delivering standout performances, but behind those numbers, a significant portion of retail is bumping along below inflation,” Retail NZ CEO Carolyn Young said.
Electrical and electronic goods led the way, up 23.5 per cent compared to the 2025 June quarter in actual terms, hitting NZ$1.12 billion.
“Electronics have posted impressive results for several quarters,” Young said. “We’re likely seeing the natural replacement cycle from the COVID tech buying spike, alongside strong consumer interest in AI-integrated devices.”
Home and health also saw solid gains. Pharmaceutical was up 13.1 per cent whilst hardware and building supplies rose 9.5 per cent and furniture and housewares grew 9.1 per cent.
However, core sectors like supermarkets (up 2.6 per cent), recreational goods (up 2.7 per cent), and department stores (up 0.6 per cent) failed to keep pace with inflation. Meanwhile, fuel spending spiked 25.1 per cent (or by NZ$550 million) to hit $2.74 billion.
“High nondiscretionary costs at the pump continue to eat into household budgets, limiting what shoppers have left for discretionary retail,” Young added.
The data from Stats NZ also show stock levels across each industry, with fashion inventories falling 1.8 per cent in the June 2026 quarter year-on-year. Fashion stock has been trending down from a peak of $797 million in the September 2024 quarter to $739 million in the latest quarter.
In trend terms, clothing, footwear and accessories saw a 0.2 per cent lift in sales volumes between June 2025 and June 2026 quarters.
Across all core retail, excluding fuel and vehicles, retail sales lifted 5.2 per cent.
Looking at the regions, Auckland will welcome its 6.8 per cent increase, while Canterbury, Otago, and Southland are helping offset weaker growth across the rest of the South Island.