Electronic cards data for June shows that retail spending rose for the first time in four months in June, boosted by a lift in durables and apparel spending, but retailers are reporting that 60% of them did not meet sales targets in the June quarter

Retail spending rose for the first time in fourth months in June, boosted by rises in apparel and durables spending.

According to Statistics NZ's electronic cards transactions data seasonally-adjusted spending in the retail industries increased 0.5% ($32 million), while spending in the core retail industries (excluding petrol and vehicles) increased 0.7% ($40 million).

It's the first rise since February, but doesn't really point to any quick turnaround in the very sluggish spending patterns seen in the past year and a half. And retailers are reporting continued tough conditions in which many of them are not meeting sales targets.

By retail spending category, movements were:

• consumables, up $29 million (1.0%)
• durables, up $10 million (0.6%)
• apparel, up $10 million (3.1%)
• fuel, up $0.2 million (0.0%)
• hospitality, down $3.7 million (0.3%)
• motor vehicles (excluding fuel), down $5.2 million (2.7%).

Retail NZ chief executive Carolyn Young said when compared with June 2024 – "which is how retailers monitor their sales performance" – sales are down 0.4%.

"While it’s positive to see the improvement in sales compared to May, the year-on-year data tells a different story." 

Initial results from Retail NZ’s quarterly Retail Radar survey of retailers shows that about 60% of respondents report they did not meet their sales targets for the April-June quarter. (The full survey results will be released next week.)

"The retail sector is continuing to battle strong headwinds, with low consumer confidence limiting sales. Consumers are continuing to be careful with their spending and we have yet to see the boost expected from lower interest rates," Young said.

Westpac senior economist Satish Ranchhod said while the June rise in retail spending is an encouraging sign for economic activity, "it does need to be taken with a grain of salt".

"Much of the rise in spending over the past month was related to increased spending on groceries, and in part that will reflect the large price increases for items like butter. June also saw a fall in petrol prices which would have put money back into households’ pockets, supporting spending in other areas," he said.

There are, however "some positive signs under the surface", with some pickup in discretionary spending categories. Notably, spending on household durables (like furnishings) was up 0.6% and spending on apparel was up 3%. 

"On the downside, hospitality spending fell again in June, dropping 0.3% over the month. Hospitality spending has trended down for the past six months, with many operators reporting tough trading conditions," Ranchhod said.

While retail spending was up in June, the total value of electronic card spending, including the two non-retail categories (services and other non-retail), decreased from May 2025, down $15 million (0.2%).

The non-retail (excluding services) category decreased by $41 million (1.8%) from May 2025. This category includes medical and other health care, travel and tour arrangement, postal and courier delivery, and other non-retail industries.

The services category was up $2.6 million (0.7%). This category includes repair and maintenance, and personal care, funeral, and other personal services.

In actual terms, cardholders made 166 million transactions across all industries in June 2025 (down on 167 million transactions for the same month in 2024), with an average value of $54 per transaction (unchanged from June 2024). The total amount spent using electronic cards was $8.9 billion (down from $9.0 billion in June 2024).

While the June month saw a rise in retail spending, the figures for the June quarter, also released on Monday, highlighted how grim things have been for the retailers.

Stats NZ said that on a seasonally-adjusted basis spending in the retail industries decreased $144 million (0.7%) in the June quarter compared with the March quarter. Spending in the core retail industries decreased $48 million (0.3%).

By spending category, the movements were:

• fuel, down $71 million (4.7%)
• hospitality, down $65 million (1.5%)
• durables, down $35 million (0.7%)
• apparel, down $8.1 million (0.8%)
• motor vehicles (excluding fuel), down $3.9 million (0.7%)
• consumables, up $111 million (1.4%).

The non-retail (excluding services) category was down $379 million (5.4%) and the services category was up $2.3 million (0.2%).

Stats NZ said the total value of electronic card spending in the June quarter, including the two non-retail categories (services and other non-retail), decreased by $419 million (1.5%) compared with the March 2025 quarter.