Fashion spending across New Zealand is suffering in recent months while other core retail categories boom, according to new electronic card transaction data from Stats NZ.
In actual terms, apparel sales slipped 0.8 per cent between May 2025 and May 2026, to NZ$334 million. This has actually improved from recent months, with April year-on-year apparel sales down 2.9 per cent, while March was down 4.2 per cent.
In trend terms, which excludes seasonal fluctuations and short term irregular movements, apparel spending has slipped from May 2024 to May 2026 by around NZ$18 million. In actual terms, apparel spending is down NZ$18 million between May 2024 and May 2026.
The three other core retail categories have seen growth year-0n-year, and over the last two years. Consumables, which cover food items, grew by NZ$134 million to NZ$2.8 billion over the last two years. Durables, which cover long-lasting goods, grew by NZ$64 million in the same time frame to NZ$1.6 billion, while the hospitality category grew by NZ$58 million to NZ$1.4 billion. Core retail excludes fuel, vehicles and services.
According to peak body Retail NZ, the Stats NZ data shows the strongest year-on-year growth in actual core retail sales since January 2024.
“The core retail spending was up 2.8 per cent in May 2026 compared to a year earlier – the highest rise in more than two years,” Retail NZ CEO Carolyn Young said. “Most impressively, the durables sector, which includes furniture, hardware, electronics, and pharmacies, jumped 4.8 per cent on 2025 figures.”
Young said this is evidence of the ‘IKEA Effect’ boosting furniture sales.
“With fuel prices finally coming down from the highs of March and April, people who had put off buying major items are out spending again, heavily supported by King’s Birthday weekend promotions,” Young said.
The hospitality sector also performed well, up 3.2 per cent on May last year. This came amid a number of high-profile sporting and music events over the last month.
“People are spending with local retailers then choosing to make a night of it by heading out to local restaurants and bars,” Young said.
In contrast, growth in consumables was modest compared to recent trends. Young said Kiwis are still being strategic with day-to-day budgets.
“We know people are actively switching to cheaper brands to bring down their weekly grocery spending, with thought behind every dollar spent.”
Overall, Young said it is highly encouraging to see retail seeing some growth despite recent international turbulence.