Green Shoots May Be Appearing For Retailers

While it is too soon to say that the retail sector has turned a corner, new data suggests that retailers may be starting to see some green shoots, Retail NZ Chief Executive Carolyn Young says.

Stats NZ’s Electronic Card Transactions for August shows a small increase of 0.7% in total retail spending compared to July (seasonally adjusted monthly values). This is the third consecutive monthly increase.

Some of the increase may be attributed to increasing prices, but the continued spending increase suggests that a turn-around may be starting for the embattled retail sector.

“We’re pleased to see there has also been a small increase in the number of transactions, suggesting that consumers are bringing their cards out a little more often,” Ms Young says.

This will hearten retailers as they prepare for the traditionally busy Christmas season, she says.

“We are hoping this will give retailers confidence to buy stock and retain staff in the run up to the end of the year. Consumers are continuing to be careful with their spending but we want to see these improvements continue during the coming months.”

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