Retail spending has picked up during July, with increases across hospitality, clothing and durable goods providing a "welcome boost" for retailers after a quiet start to winter.
According to Stats NZ's latest electronic card transactions data, actual core retail spending was up 3.5% in July compared with the same month last year.
That marked a significant increase from June, where spending increased by just 0.4% from June 2025, and the total value of electronic card spending dropped by $116 million (1.2%) compared to May.
Retail NZ's advocacy, advice and communications manager Denise Garland said the July figures were encouraging for the struggling sector during a period of the year which was often slow.
"Falling fuel prices meant households had a little bit extra in their pockets, and we can see that Kiwis took that opportunity to treat themselves,” she said.
Across July 2026, hospitality spending was up $46 million (3.2%), durables were up $41 million (2.5%), and consumables were up $28 million (1.0%).
Apparel also increased by 2.5% year-on-year — the sector's largest annual increase in two years and its biggest bump in spending since 2020.
Fuel spending was down $22 million (4.3%), while motor vehicle spending, excluding fuel, was down $0.3 million (0.1%).
Garland said an increase in hospitality spending was often a sign of improving consumer confidence.
“The men’s FIFA Football World Cup looks to have encouraged people out into bars and restaurants right around the motu," she added.
"Events are hugely important to retail, because extra foot traffic in our town and city centres also means more people are out browsing in our high streets.'
However, Garland cautioned that it was too early to tell whether the July figures pointed to a broader improvement in consumer confidence or were the result of several factors lining up in retailers’ favour.
"July was unique in that not only was there a major international sporting event for the first half of the month, but there was also a public holiday – Matariki – and there were five Fridays, which are typically the weekday where we see the biggest spend in retail," she said.
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