More retailers are closing across New Zealand despite rising consumer spending, new data from Experian shows.

According to the findings, 12.7 per cent of retailers shuttered in Wellington in the 12 months to June, while spending rose 14.8 per cent from the prior year.

In Auckland, 10.7 per cent of retailers closed despite a 16 per cent increase in spending. 

A similar trend was also observed in other markets where Experian conducted the research, including Christchurch, Hamilton and Rotorua. These regions also saw retail closure rates of between 10 and 12 per cent.

Compared to last year, retail closure rates in all five regions have increased.

Louis Tsang, Experian’s head of analytics consulting and insights, told BusinessDesk that rising spending does not guarantee business survival.

“Even though people are spending, there is still stress from a host of other factors in the past three to six months.”

The findings also suggest that consumers are saving less and borrowing more, with the personal loan hardship rate at 2.25 per cent, up 0.49 per cent from last year. Credit card hardships also rose by 6 basis points to 0.245 per cent in June.

The Experian data also includes numbers from the hospitality sector. Overall, fewer hospitality venues are closing than retailers during the period. The study excludes online transactions.