NZ Retailers Struggle with Stagnant Consumer Spending

Retailers in New Zealand are facing another setback as card spending data reveals stagnant consumer habits. The latest figures from Stats NZ show that retail spending remained unchanged between August 2025 and 2026, with a month-on-month decline of 0.9 per cent. This trend is attributed to the aftermath of a strong July, which was boosted by public holidays and international sporting events.

The apparel sector suffered the most significant loss, with year-on-year spending falling 2.5 per cent. While some categories experienced increased spending, this growth fell below inflation rates. Retail NZ CEO Carolyn Young notes that consumers may be reining in their discretionary purchases due to economic pressures and the desire to save after a summer of celebration.

Young also expressed concerns about the upcoming holiday season, as many retailers rely on strong sales during this period to sustain themselves through quieter months later in the year. The sector is hoping for a spring uptick and increased tourist numbers to boost spending until the holiday season gets underway.