Retail spending falls for third month, down 0.7% in October as fuel costs remain high

Detailed summary

Retail spending continued its downward trend in October, with spending falling in every category compared to September except fuel. Spending decreased 0.7%, or $47 million, with…

Retail spending continued its downward trend in October, with spending falling in every category compared to September except fuel.

Spending decreased 0.7%, or $47 million, with spending in core retail industries falling 1.2% ($73m).

By category, durables dropped most, down $34m (2.1%). Durables include larger homeware and whiteware purchases.

Hospitality spending dropped $23m (1.6%), with consumable spending down $7.5m (0.3%).

Apparel spending followed suit, down $2.2m (0.7%), with motor vehicles (excluding fuel) down 2% ($3.8m).

The only category with an increase in spending was fuel, up $25m (4.8%).

Retail NZ chief executive Carolyn Young said shoppers held back in October as many wait for Black Friday deals.

“The fall in durables tells us many people are putting off bigger purchases. With Black Friday now dominating November promotions, retailers have told me recently that customers are not buying unless a product is on sale. Shoppers know that if they hold out, they’re likely to pay less if they purchase in November,” Young said.

“One in three retailers tell us they’re putting more into their promotions this year, hoping to attract savvy shoppers looking for bargains.”

Opening of the article, excerpted from NZ Herald Business. To read the rest, open the article on the publisher's site.