Total retail card spending in October rose 0.8% compared to the same month last year, the latest Electronic Card Transaction data from Stats NZ has revealed.
Meanwhile, seasonally adjusted figures showed a 0.2% increase.
The actual monthly values indicated that consumables, which increased 4.3%, and hospitality, which rose 0.7%, performed better than durables (down -2.5%) and apparel (down -2.3%).
Retail NZ chief executive Carolyn Young stated that retailers were concentrating on the actual card spend rather than the seasonally adjusted numbers because of the sector’s cyclical nature.
“Businesses have been hanging in there, waiting to see an improvement in the economy,” Young said.
“As we head into the important Black Friday, Christmas and Boxing Day sales period, it’s going to be important to see continued improvements across the whole sector.”
“While there is some good news there, more is needed to share the benefits right across retail.”
“The retail sector remains under significant strain, with businesses advising that they are absorbing as many cost increases as they can, working harder than ever as margins are being squeezed, creating significant challenges to remain open.”
“We are still seeing liquidations and closures across the sector, although some regional areas are showing signs of improved trading on the back of strong dairy prices,” Young said.
Young remains optimistic that the Reserve Bank’s recent OCR cut signals a possible easing of economic pressures ahead. “However, retailers are not noticing any immediate change in consumer spending.”