Payments company Worldline said consumers showed slightly greater spending willingness early in the year, though bad weather dampened activity in some areas.
Core retail spending climbed 0.6% in January from a year earlier, amid ongoing mixed results across regions, cities, and between the North and South Islands.
“The annual growth rate seen in January 2026 compared to 2025 was not high but was at least a positive start to the year – but we also noted a sharp fall in spending on Thursday 21 January, the day of storms and heavy rainfall that had tragic impacts in some areas,” Worldline NZ’s chief sales officer, Bruce Proffit, said.
Retail spending on the Worldline NZ network plunged 5.6% that day.
Annual spending growth peaked in Whanganui (+2.5%), Hawke’s Bay (+1.9%), and Palmerston North (+1.9%), while lagging in the Bay of Plenty (-3.4%), Taranaki (-3.0%), and Gisborne (-1.0%).
“The net effect of the storms over the month resulted in Bay of Plenty and Gisborne being amongst the weakest regions in the country in terms of the annual change in spending,” Proffit explained.
Retail NZ chief executive Carolyn Young stayed cautious, noting that the latest unemployment rise to 5.4% signals consumers will keep prioritising essentials for some time.
“Retailers have been experiencing tough trading conditions for some time now,” Young said. “And while business confidence is largely positive overall, it is clear it could be some time before New Zealanders feel confident enough in the economic conditions to increase their discretionary spending.”
Young said many retailers feel like they’re just treading water as the economy stalls sideways instead of advancing.