New Zealand’s retail sector experienced an increase in activity during the March 2026 quarter, driven primarily by spending on essential commodities.

“This is an encouraging result for retailers, with the figures showing the positivity seen in the final quarter of 2025 wasn’t a flash in the pan,” said Carolyn Young, Retail NZ CEO.

According to data released by Stats NZ, the total volume of retail sales rose by 0.9 per cent ($232 million) in the December 2025 quarter, after seasonal adjustments and inflation corrections.

Ten out of 15 retail industries recorded higher sales volumes during this period. 

“The increase in activity this quarter was mainly driven by supermarket and grocery stores; hardware, building, and garden supplies; accommodation; and pharmaceutical and other store-based retailing,” said Michelle Feyen, economic indicators spokesperson.

Supermarket and grocery stores saw a 1.7 per cent increase in volume, while hardware, building, and garden supplies grew by 2.7 per cent. 

The latest retail trade survey from Stats NZ also indicates that core retail spending was up 6 per cent in actual value for the quarter.

Accommodation sectors also posted a 6.1 per cent rise. Conversely, some sectors faced declines, notably clothing, footwear, and accessories, which fell by 4.8 per cent.

While the headline figures indicate an increase in economic activity, industry analysis reveals underlying challenges. 

Retail NZ noted that the growth remains uneven across the sector. Data show grocery spending increased by 4.1 per cent in total value, yet remained relatively flat in actual volume. 

Industry analysts suggest this disparity points to price inflation driving the higher spending figures rather than an increase in the quantity of goods purchased by consumers.

Geographically, growth varied across the country. The South Island led the regional expansion, with Canterbury and Otago recording value increases of 8.7 per cent and 12.3 per cent respectively. 

The regional performance coincided with a 15.1 per cent year-on-year increase in overseas visitor arrivals for March 2026, adding more than 47,000 tourists to the market. 

Meanwhile, Auckland and Wellington posted value growth of 5.8 per cent and 5.6 per cent, respectively. 

Retail NZ cautioned that the aggregate national figures mask significant variation, as performance continues to differ between individual retailers within the same categories.

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