Retail card spending in New Zealand saw a 3.8 per cent year-on-year decrease in April, extending the 2.3 per cent decline in March, Stats NZ’s latest Electronic Card Transactions shows.

The decline reflects continued headwinds in the retail sector, said Retail NZ chief executive Carolyn Young. 

As customers are generally spending less, it is very difficult for businesses to make sales. Other costs including wages, insurance, freight are also rising, Young continued.

“Retailers experienced tough trading conditions in 2023 so we are comparing off a low base. Further decreases in sales are eating into margins and profitability,” she added.

Retail NZ is hoping the promised tax cuts in the upcoming Budget will lead to a lift in consumer confidence and spending.