Many New Zealand shoppers kept their wallets closed in October, as record fuel prices took a bigger bite out of household budgets, likely holding off for Black Friday deals.
Core retail card spending fell 0.8 per cent year on year in October, according to the latest Electronic Card Transaction data from Stats NZ. Total retail card spending edged up 0.3 per cent, but only because of fuel: New Zealanders spent NZ$77 million (around A$67 million) more at the pump than a year earlier, a rise of 15.9 per cent.
Apparel was among the hardest-hit categories. Card spending on apparel fell 3.2 per cent to $321 million, down from $332 million in October last year. It was the category’s third straight year-on-year decline, and its seventh in eight months. July was the only month since February to show growth. Across the first ten months of the year, apparel card spending totalled $3.09 billion, down 1.9 per cent on the same period in 2025.
Seasonally adjusted to remove seasonal fluctuations, apparel spending slipped 0.7 per cent month on month to $319 million. That was its third consecutive monthly fall and the lowest seasonally adjusted figure in the two years of data covered by the release.
The trend series, which smooths out short-term swings, has fallen every month since December. It dropped 0.8 per cent in October.
That puts more weight on the peak trading months for fashion retailers. Last year, apparel card spending rose from $332 million in October to $392 million in November and $495 million in December.
Retail NZ, the peak body representing the retail sector, said fuel was squeezing discretionary spend.
“Fuel prices were at record levels in October, around $3.60 a litre for unleaded 91, and this is eating into household budgets,” Retail NZ chief executive Carolyn Young said. “We also had an extra Saturday in October compared to last year, so the figures may be even weaker than they appear.”
Spending fell across most of retail. Durables were down 2.4 per cent and hospitality fell 4.4 per cent. Consumables was the only core category to grow, up 2.2 per cent, as households kept prioritising essentials.
“The fall in durables tells us many people are putting off bigger purchases,” Young said. “With Black Friday now dominating November promotions, retailers have told me recently that customers are not buying unless a product is on sale. Shoppers know that if they hold out, they’re likely to pay less if they purchase in November.”
According to Young, one in three retailers are putting more into their promotions this year to attract bargain hunters.
The New Zealand dollar kept weakening in October, and an increase to the official cash rate is expected in December. Election campaigning was also ramping up, which may have added to uncertainty in the market.
“Retailers don’t seem to be able to get a break,” Young said. “We need the incoming Government to get to grips with rising fuel and power costs as this is increasing the cost of doing business and impacting the cost of living for consumers.”
Even so, three-quarters of Retail NZ members are confident trading will be good heading into the holiday season. November and December remain crucial months for a sector under pressure.