Volume growth
Pharmaceutical and other store-based retailing had the largest quarterly sales volume rise, up by 3.7%.
Motor vehicle and parts retailing, as well as clothing, footwear, and personal accessories also had positive sales volume growth, up 3.1% and 3.2% respectively.
Accommodation sales volumes rose by 2.9% in the quarter.
Sales volumes in the hardware, building, and garden supplies category declined, dropping by 2.1% in the quarter.
Liquor retailing had the biggest drop over the quarter in sales volumes: 6.5%.
Higher sales
Across the retail industry, 11 of the 15 categories experienced higher seasonally adjusted sales values in the March 2025 quarter compared with the December 2024 quarter.
The largest sales value growth was once again pharmaceutical and other store-based retailing – up by 5.1% ($106m).
Motor vehicle and parts retailing was up 3.5% ($134m), with fuel sales values growing by 5.3% ($121m).
Sales values in supermarket and grocery stores also grew over the quarter, up 1.1% ($76m).
However, hardware, building, and garden supplies were once again down, dropping 2.3% ($59m).
Regional revival
All 16 regions had higher retail sales values in the March 2025 quarter, compared with the December 2024 quarter, after adjusting for seasonal effects.
Sales in the South Island increased by 2.7% ($200m) to $7.6b, while sales in the North Island increased by 1.7% ($373m) to $23b.
Looking specifically to the major centres, Auckland retail sales values were up 1.9% ($211m), Canterbury was up 2.4% ($96 million) and Wellington was up 2.5% ($67m).
However, the biggest growth in retail sales values over the quarter was found in the West Coast and Nelson regions, up 5.7% and 4.6% respectively.
As for stock values, the total value of stock held at March 31, 2025 was $9.3b, down 1.5% ($143m) compared with March 31, 2024.
The largest movements were found in motor vehicle and parts retailing, down 4.5% ($97m), and hardware, building, and garden supplies, down 4.4% ($64m).
Better than expected
Westpac senior economist Satish Ranchhod said the result was well ahead of Westpac’s own forecast and the average market forecast.
“We’ve been forecasting a turnaround in retail spending over the course of this year as the impact of interest rate cuts ripples through the economy,” Ranchhod said.
“But we were expecting that rise would be seen more clearly in the latter part of the year. Instead, it looks like New Zealanders are already hitting the stores.”
He said the 0.4% rise in core spending on clothing, accommodation and in pharmacies and other stores was encouraging, although there had been continued softness in spending on furnishings and other durable household items.
“More recent updates on retail sector indicate that we could see some further softness in spending through the middle part of the year, consistent with feedback from retailers.
“Even so, it looks like a recovery in the retail sector is now taking shape.”
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
