Kiwi retailers saw softer retail spending in August amid unfavourable macroeconomic conditions.

Worldline spending data showed that sales turnover of core retail merchants declined 0.5 per cent year over year in August.

“In August, we have seen tax breaks together with the cuts in the official cash rate and a small improvement in consumer confidence,” said Carolyn Young, CEO of Retail NZ.

“However, these factors are yet to have a major impact on consumer spending as outlined in the Worldline data.”

The recent Business NZ Sentiment Survey cited profitability, interest rates and inflation as the top three concerns among businesses.

While inflation has been tamed and interest rates have started to decline, retailers are still struggling with squeezed profit margins.

Young noted that if businesses can still survive in the next few months, the retail industry may improve in time for the Christmas season.