Retail sales have seen the biggest drop in 25 years, falling 15 per cent during the June quarter according to Stats NZ.
The unprecedented fall was not unexpected, said retail statistics manager Kathy Hicks, since Covid-19 has significantly limited the ability for retailers to operate.
According to Hicks, non-essential businesses were closed for about half of the quarter, with most industries being impacted.
Sales in food and beverage services fell 40 per cent, or $1.2 billion, during the quarter, while fuel retaining fell 35 per cent or $770 million.
These decreases were partially offset by an increase in supermarket and grocery activity, which grew 12 per cent following the record 13 per cent rise in the March quarter – reflecting the industry’s ability to continue trading through the pandemic lockdowns.
Online business also saw a large jump, with electrical and electronic goods retailing up 5.4 per cent.
“These businesses were able to operate online under lockdown as an essential service,” Hicks said.
“They provided food deliveries and electronic supplies, such as heaters or computer monitors for home office set-ups during lockdown.”
Unsurprisingly, different parts of New Zealand were hit differently, though all suffered losses during the quarter.
Businesses in Auckland lost $1.2 billion, down 13 per cent, while Canterbury fell 17 per cent or $516 million. And while these areas are associated with larger population numbers and saw the largest falls by dollar value, sales in Otago fell 27 per cent due to the lack of tourism.
