Stats NZ data shows retail sales, adjusted for inflation, fell by 1.2% during the three months ending in June.
Stats NZ says 11 out of the 15 retail sectors it monitors experienced lower sales volumes in the June quarter compared to the March quarter, continuing the “downward trend” seen over the past eight quarters. This reflects the ongoing financial pressures faced by consumers due to rising prices and high interest rates.
Notable sectors that saw decreases include:
- Electrical and Electronic Goods (down at 6%)
- Motor Vehicles and Parts (down at 2.7%)
- Food and Beverage Services (down at 1.9%)
- Clothing, Footwear, and Personal Accessories (down at 4.1%)
“Retail sales decreased the most in the electrical and electronic goods industry and the motor vehicle and parts industry. By contrast, supermarket sales were up in the June quarter,” Stats NZ’s business financial statistics manager Ricky Ho explained.
Supermarket and grocery store sales saw a positive trend, with volumes increasing by 2.1%. Sales from pharmaceuticals and other store-based retailing went up 3.2%.
Carolyn Young, chief executive of Retail NZ chief executive said the data reveals how tough it has been for retailers. However, with the Reserve Bank lowering the official cash rate and pledging further reductions, there is optimism that the numbers will improve.
“We are all hoping that last week’s OCR cut and the recent tax cuts will help kick-start the economy and provide a change in fortune for retail. While we appreciate it’s not going to happen overnight, that shift in consumer confidence is critical. The continued financial pressures over the last couple of years have squeezed households’ spending appetites.” she said.