Our take on the latest Retail trade survey (Fri 25 Feb 2022)
Retail sales volumes grew 8.6% (sa) in the December quarter
Hardware building and garden supplies spending grew 33% (sa)
Total stocks increased 1.7% (sa)
The key numbers...
- Retail spending volumes rebounded 8.6% (seasonally adjusted) in the December quarter, as Covid restrictions eased when it became apparent the Delta outbreak was mainly confined to Auckland.
- Spending in Auckland in the December quarter was remarkably strong considering the prolonged restrictions, especially for the hospitality sector. Total spending activity was up 8.1%pa, more or less in line with the national rebound.
- Food and beverage spending grew 12% (sa) as bars and restaurants reopened, although nationwide food and beverage spending was still down 6.9% from the December 2020 quarter. Accommodation spending was down 15%pa.
- There was solid growth in hardware and garden supplies, recreational goods retailing, and electronic goods retailing, with sales volumes up 16%, 26%, and 12%pa respectively.
Seasonally adjusted retail sales
$m (Sept 2010 prices)
...and our reaction
- The December quarter saw a strong bounce back from the Delta lockdown. The economy was better adapted to a swift recovery compared with the initial COVID-19 lockdown, and consequently people were willing to spend on what was available.
- Although the rebound was strong, spending wasn’t quite as high as in the June 2021 quarter, possibly because of some extended restrictions across the upper North Island limiting some spending options.
- Domestic tourism, which had been booming before the Delta outbreak, was damaged by Aucklanders unable to leave the region for most of the December quarter, as well as ongoing restrictions on hospitality in the region.
- There was strong substitution towards home improvement, and at-home or self-reliant entertainment, demonstrated by large growth in retailing of tangibles at the expense of face-to-face service industries.
- Looking ahead, rising interest rates and hesitancy of going out due to Omicron pose challenges to continued strength in retail during the first half of 2022.
Latest updates
Premium
Retail trade survey
Core retail volumes grow slower as consumers adjust to elevated fuel prices
Mon 24 Aug 2026
Quarterly
-0.5% Total retail sales volumes in the June 2026 quarter (seas. adj.)+0.7% Core retail sales volumes in the June 2026 quarter (seas. adj.)+6.5%pa South Island core retail sales in the June 2026 quarterPremium
Retail trade survey
Anxious consumers pull back on discretionary spending
Fri 22 May 2026
Quarterly
1.0% Core retail sales volumes in the March 2026 quarter (seas. adj.)8 of 13 core industries recorded quarterly rises (seas. adj.)-4.8% Clothing, footwear in the March 2026 quarter (seas. adj.)Retail trade survey
Retail spending continues to strengthen
Mon 23 Feb 2026
Quarterly
1.5% Core retail sales volumes in December (seas. adj.)11 of 13 core industries recorded quarterly rises (seas. adj.)South Island continues to lead the recoveryRetail trade survey
Retail spending recovery gaining traction
Thu 27 Nov 2025
Quarterly
Core retail sales volumes up 1.2% in September (seas. adj.)
Seven of 13 core industries saw quarterly rises (seas. adj.)North Island growth starting to follow the South’s lead