Retail card spending recorded a modest increase in May, indicating the sector’s resilience in a challenging period marked by high fuel prices and economic uncertainty. 

According to electronic card transactions data from Stats NZ, which covers debit, credit, and charge card transactions with New Zealand-based merchants, spending in the retail industries increased 1.7 per cent in May compared to April. Spending in the core retail industries also rose 2.2 per cent.

By category, apparel saw the biggest increase of 3.1 per cent, followed by durables with a 2.7 per cent uplift. Motor vehicles grew 1.6 per cent, and consumables edged up 0.9 per cent. 

Fuel was the only category seeing a decline, with spending down 0.8 per cent.

The latest data from the Cuscal Paymark (previously Worldline) network also showed similar optimism. Consumer spending in May rose 1.2 per cent year-on-year, a bounce-back from a 0.1 per cent decrease in April. 

The positive momentum in May was heavily driven by spending in supermarkets, grocery stores, restaurants, and cafes. 

“After a challenging period where skyrocketing fuel costs drained household budgets, these latest figures provide an encouraging signal for some parts of the retail sector”, said Retail NZ CEO Carolyn Young.

While the overall value of spending is up, Retail NZ notes that the environment remains complex, as rising prices are still shaping the retail landscape.