Retailers in Canterbury have shown resilience despite a challenging environment for the sector nationwide, according to the latest quarterly retail spending data.

The June quarter figures, released this morning, indicate a 1.2% decline in overall retail activity across New Zealand, with total retail sales dropping by $24 billion, seasonally adjusted to $30 billion.

Canterbury and the West Coast were the only regions to buck this trend, showing stable or improved retail performance, while Wellington saw a significant decline, with sales values down by 3.3%.

The recent cut of 0.25% to the Official Cash Rate (OCR) by the Reserve Bank, coupled with promises of further cuts, offers a glimmer of hope for the struggling retail sector.

Retail NZ Chief Executive Carolyn Young said, “We are all hoping that last week’s OCR cut and the recent tax cuts will help kick-start the economy and provide a change in fortune for retail. While we appreciate it’s not going to happen overnight, that shift in consumer confidence is critical. The continued financial pressures over the last couple of years have squeezed households’ spending appetites.”

The latest figures align with findings from Retail NZ’s recent Retail Radar quarterly survey, which revealed that 71% of its members failed to meet sales targets last quarter, and 42% of retailers are uncertain about their ability to survive the next 12 months.

Despite these grim statistics, Young remains cautiously optimistic. “While it feels like it has been more of the same, we are hoping to see some momentum in the economy over the next few months to help provide momentum into that critical last quarter of the year for retailers,” she said. “We are looking forward to talking about a more positive outlook and sales in the coming months.”