Retail Challenges Continue

Retail card spending figures for October 2024 show that the retail sector is continuing to face challenges, Retail NZ Chief Executive Carolyn Young says.

Stats NZ’s latest Electronic Card Transactions shows a 1.1% fall in retail spending compared to October 2023. This follows a 5.6% fall in September, compared to the same month of 2023.

The number of transactions rose 1.1% compared to October 2023, showing that consumers were spending less on each transaction.

“This aligns with our recent Retail Radar quarterly survey which found that 70% of survey respondents did not meet their sales targets in the July-September quarter,” Ms Young says.

Today’s Electronic Card Transaction figures also show there was a small increase in retail spending in October compared to the previous month (up 0.6%). This follows the normal pattern for spending as retailers move into the busiest time of the year.

“The next few weeks are critical for retailers with key sales periods including the Black Friday sales and Christmas promotions. Many retailers rely heavily on strong sales during this period to ensure they have a buffer for quieter months, so we hope that consumers will respond to improving economic conditions with increased confidence,” Ms Young says.

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