Kiwis are still spending less as the total volume of retail sales continues to drop.
Spending at supermarkets continued to climb, however, as trolleys rolled through the checkouts.
According to new numbers from Stats NZ, the total volume of retail sales dropped 1.2%, around $379 million, in the June 2024 quarter after adjusting for price inflation and seasonal effects.
“This movement continues the downward trend observed in the last eight quarters,” Stats NZ said.
Stats NZ said 11 of the 15 retail industries had lower sales volumes in the June 2024 quarter when compared with the March 2024 quarter.
The biggest contributors to the slump were electrical and electronic goods retailing (down 6%), motor vehicle and parts retailing (down 2.7%), food and beverage services (down 1.9%), and clothing, footwear, and personal accessories (down 4.1%).
Business financial statistics manager Ricky Ho said: “Retail sales decreased the most in the electrical and electronic goods industry and the motor vehicles and parts industry. By contrast, supermarket sales were up in the June quarter.”
Supermarket spending was up by 3.8%.
The total volume of retail sales per person dropped 1.5% in the June 2024 quarter compared to the March 2024 quarter – the tenth consecutive fall.
“Retail sale volumes per person has been falling for the last two-and-a-half years. The last time we saw several quarters of consistent falls was between 2007 and 2009, which coincided with the global financial crisis,” Ho said.
Tough year for retail
Earlier this month, Auckland department store Smith & Caughey’s announced it would remain open in a “new, reduced format” after it was proposed that the business would close its Auckland and Newmarket stores.
It decided to keep its Queen Street location open with a “new reduced format beyond January 2025”. The Newmarket store is expected to close later this year.
The Warehouse is another big name struggling with the current downturn.
Chief executive Nick Grayston left earlier this year, and the company is bracing for a drop in earnings. Jobs are also on the line at its head office.
Forsyth Barr retail analyst Paul Koraua said in July that part of the problem for retail was the power of overseas online sales giants.
“The likes of Temu and Shein have positioned themselves in a place where they are low price, and consumers are finding that to be quite an attractive value proposition,” he said.
“You know what you’re getting as a consumer; you’re not surprised to the downside when the product comes, and it maybe doesn’t live up to their expectations because you’ve paid less for it.”
