New Zealand’s core retail sales decreased again in the September quarter, which indicated the continued challenges facing the sector.

Stats NZ’s latest Retail Trade Survey shows that core retail sales for the quarter fell 1.7 per cent year-on-year. Total retail sales (including motor vehicles and parts, and fuel) were also down 2.8 per cent.

When compared with the June quarter, the total volume of retail sales decreased 0.1 per cent, with declines reported in 10 of the 15 retail industries. 

Food and beverage services saw the biggest decline with sales down 2.1 per cent, followed by supermarkets and grocery stores with a 1.3 per cent drop.

Meanwhile, motor vehicles and electrical and electronic goods enjoyed improvements of 4.6 per cent and 4.3 per cent, respectively.

Retail NZ CEO Carolyn Young said the data aligns with the recent Retail Radar quarterly survey, which found that 70 per cent of respondents did not meet their sales targets in the September quarter.

Although there were early signs that the economy is starting to improve, these were not enough to encourage consumers to spend more during the quarter, Young continued.

“The next few weeks are critical for retailers with key sales periods, including the Black Friday sales and Christmas promotions. Many retailers rely heavily on strong sales during this period to ensure they have a buffer for quieter months,” she added.