Retail Spending Stalls Before Crucial Last Quarter

06 Oct 2026, 09:52 by Retail NZ · SCOOP

Retail NZ, the peak body representing retailers, says there will need to be a significant lift in consumer confidence to boost the sector as we head into the crucial Christmas sales period, after the latest Paymark figures showed muted spending in September.

The latest data shows core retail transactions through Paymark's payments network during September were down 1.3% compared with September 2025, following adjustments for merchants coming and going from the network.

Paymark also reported spending at fuel outlets was 35% higher year-on-year in the week ending 30 September, driven largely by higher prices.

Retail NZ Chief Executive, Carolyn Young, says the data reflects what retailers have been seeing since an uncharacteristically cheery July - consumers are reluctant to spend on non-essentials.

“These figures reinforce what retailers have been telling us: households remain cautious and there simply isn’t a lot of spare money available for discretionary spending,” Ms Young says.

"Rising fuel costs and interest rates are adding further pressure to household budgets; when Kiwis have to put more money towards putting petrol in the tank and their mortgage repayments, something else has to give. Unfortunately for many retailers, that means shoppers delaying or foregoing the discretionary purchases that businesses rely on.”

Ms Young says after a roller coaster of a year so far, there is a lot riding on the next few months, especially with the election just around the corner.

"Consumers need certainty about what the future looks like, and with the upcoming election too close to call at the moment, that adds to the already cautious consumer approach.

“Retailers are now heading into their most important trading period of the year, so they will be looking for signs that shoppers are ready to loosen the purse strings as we get closer to Christmas.”

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