The latest card spending data from Stats NZ show fashion sales across the ditch rebounded in January 2026, with actual fashion spending up 1.4 per cent compared to January 2025 to NZ$346 million.
This followed a 3 per cent plummet in fashion spending in December 2025 compared to the same month in 2024.
The bump up in apparel added to a 1.1 per cent lift in all core retail categories, excluding motor vehicles, fuel, and services. That came after a 0.5 per cent annual drop in spending in December 2025.
Retail NZ CEO Carolyn Young said the Stats NZ data shows retailers experienced a much-needed uptick in consumer spending to start the New Year.
“The spending figures from January show retailers have received a small spending boost to start the year, which will have been particularly welcome after a muted sales period in the traditionally strong December Christmas spending rush,” Young said.
“While durables experienced a decline in card spending of of 1.5 per cent, all other core retail sectors experienced a rise, which will have been particularly well-received by the struggling apparel sector with their 1.4 per cent boost compared to the previous year.”
In seasonally adjusted terms, which cuts out estimated fluctuations to show underlying trends, the apparel category was the only one to see a rise in spending in January 2026 compared to the prior month, up 0.6 per cent. Total core retail spending, seasonally adjusted, was down 0.9 per cent in January.
In trend terms, apparel sales were flat.
The generally positive uptick in actual spending overall comes amid improving consumer sentiment in recent months.
The ANZ-Roy Morgan New Zealand Consumer Confidence index lifted from 101.5 to 107.2 in January, hitting the highest level since August 2021.
The future conditions index, made up of forward-looking questions, lifted from 108.9 to 113.5, the highest level since May 2021. The current conditions index rose very sharply from 90.4 to 97.7, the highest since December 2021.
According to ANZ and Roy Morgan, the net percentage of consumers saying it is a good time to buy a major item is split by whether the respondent has a mortgage or not.
“Mortgage holders remain more cautious, and their enthusiasm increased by less in January,” the press release noted. “This will be a key series to watch to help gauge whether the turnaround in the direction of interest rates is biting.”
Young said retailers will be hoping that these green shoots in consumer sentiment now start to filter through to the shop floor.
“However, our members are reporting they have been adjusting sales targets and stock levels to better reflect the recent behaviour of shoppers, who have been deeply impacted by the high cost-of-living,” she said.
Young added that caution from retailers is likely to continue for the time being, with card spending data also showing yet another increase in the amount of credit card transactions (70.9 per cent) compared to debit transactions (29.1 per cent).
“The average spend per transaction is also back down to $55, which shows that while there is slightly more willingness for households to pull out the wallet, shoppers are remaining cautious about how much they are spending.”