Retail card spending saw a modest improvement in June, but challenges in the sector continued as many retailers failed to meet their sales targets.

The latest figures from Stats NZ show that the total value of electronic card transactions (ECT) in the retail sector was $32 million in June, up 0.5 per cent compared to May. ECT covers debit, credit, and charge card transactions with New Zealand-based merchants.

By category, apparel recorded the biggest increase in card spending (3.1 per cent), followed by consumables (1 per cent) and durables (0.6 per cent). Motor vehicles saw a 2.7 per cent decline, followed by hospitality with a 0.3 per cent decrease, while fuel remains flat.

On a year-on-year basis, June’s retail card spending slid 0.4 per cent. Retail card transactions for the June quarter also fell 0.7 per cent compared to the March quarter.

Initial results from Retail NZ’s quarterly Retail Radar survey show that about 60 per cent of retailers report they did not meet their sales targets for the April-June quarter. 

“While it’s positive to see the improvement in sales compared to May, the year-on-year data tells a different story,” said Retail NZ CEO Carolyn Young.

“The retail sector is continuing to battle strong headwinds, with low consumer confidence limiting sales. Consumers are continuing to be careful with their spending and we have yet to see the boost expected from lower interest rates,” she added.