NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Small Business

Retail sales shrink in December

BusinessDesk
14 Feb, 2011 12:15 AM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Photo / Steven McNicholl
Photo / Steven McNicholl

Photo / Steven McNicholl

New Zealand retail sales tumbled more than expected in the Christmas season as spending on groceries, hardware, gardening and building supplies tumbled.

Total retail sales fell a seasonally adjusted 1.1 per cent to $5.4 billion, with an 11 per cent slump in hardware and gardening equipment, and a 2.9 per cent decline in supermarket shopping. That's almost six times the 0.2 per cent contraction forecast by a Reuters survey of economists.

Core retail sales, which strips out spending on motor-vehicle related items, fell 1.2 per cent to $4.2 billion.

The New Zealand dollar dropped as low as 75.52 US cents from 75.82 cents immediately before the announcement, and recently traded at 75.67 cents.

"The chance of a contraction in (fourth quarter) GDP is still not trivial, although it is not our central view at this stage," said Philip Borkin, an economist at Goldman Sachs & Partners.

"We continue to look for a September resumption of the RBNZ tightening cycle, although this is dependent on a stabilisation in house prices."

The softer numbers are unlikely to prompt the Reserve Bank of New Zealand to start tightening rates any time soon, and traders are betting Governor Bollard will hike the official cash rate 51 basis points over the coming year according to the Overnight Index Swap curve.

Finance Minister Bill English last week flagged the possibility of a double-dip recession in the second half of last year as households continue to focus on repaying debt rather than ramping up spending.

Christina Leung, economist at ASB Institutional, said the weakness in retail spending was probably following the subdued property market, which showed sales sank to a record low last month.

"The low level of house sales is likely to have driven the substantial 9.4 per cent decline in sales volumes of furniture, floor coverings, houseware and textiles, as well as hardware, building and garden supplies," Leung said.

"With fewer people moving houses, there is less need to purchase items in these categories."

Still, January data on electronic card spending showed the number of transactions lifted 2.2 per cent, the biggest monthly increase in five years.

Today's release marks the switch to a quarterly basis, with total retail sales volumes down 0.4 per cent in the three months to Dec.31 compared to the previous period. Sales values eased down 0.1% to $12 million in the period compared the previous three months.

Core retail figures for the quarter were flat, with volumes up 0.1 per cent and values down 0.1 per cent to $11 million compared to the previous three months.

Nine of the 15 retail industries saw lower sales over the December quarter, which included eight of the 13 core retail industries.

Spending on motor vehicles and parts fell the most, down 8.2 per cent to $167 million, its first decrease in almost two years.

This was followed by durables, down 9.7 per cent to 43 million, and hardware, building and garden supplies, down 2.9 per cent to $34 million.

The largest increase in the quarter came from fuel retailing, up 10.4% to $166 million, due to rising petrol costs.

Discover more

Employment

Govt: Double-dip recession possible

09 Feb 02:00 AM
New Zealand

Fairtrade sales more than double to $36.6m

10 Feb 06:27 AM
Economy

Food prices up - fruit and veg rise 7.4pc

10 Feb 11:00 PM
Opinion

Bernard Hickey: Key's economic challenge

12 Feb 04:30 PM
Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.
Save

    Share this article

Latest from Small Business

Lifestyle

The secret sauce of the bar named NZ's best

08 Jul 10:00 PM
Premium
Small Business

On The Up: From fishing shows to first aid - Parachute First Aid's unique journey

06 Jul 05:00 PM
Premium
Business|small business

'Change their footprint': Kiwi start-up's plan to shave $1200 a year off household power bills

30 Jun 05:00 PM

From early mornings to easy living

sponsored
Advertisement
Advertise with NZME.
Recommended for you
France overhaul squad for second All Blacks test
All Blacks

France overhaul squad for second All Blacks test

10 Jul 08:13 AM
Man sentenced for taking boy to secluded spot and photographing him without togs on
New Zealand

Man sentenced for taking boy to secluded spot and photographing him without togs on

10 Jul 08:00 AM
Inside the world’s swankiest ski hotels
Travel

Inside the world’s swankiest ski hotels

10 Jul 08:00 AM
State of emergency declared for Tasman region, severe weather warnings across NZ
New Zealand

State of emergency declared for Tasman region, severe weather warnings across NZ

10 Jul 07:04 AM
‘Lock all your doors’: Neighbours recount gunman on loose after Hamilton homicide
New Zealand

‘Lock all your doors’: Neighbours recount gunman on loose after Hamilton homicide

10 Jul 07:00 AM

Latest from Small Business

The secret sauce of the bar named NZ's best

The secret sauce of the bar named NZ's best

08 Jul 10:00 PM

'I’ve always wanted to be called an institution – that’s my goal.'

Premium
On The Up: From fishing shows to first aid - Parachute First Aid's unique journey

On The Up: From fishing shows to first aid - Parachute First Aid's unique journey

06 Jul 05:00 PM
Premium
'Change their footprint': Kiwi start-up's plan to shave $1200 a year off household power bills

'Change their footprint': Kiwi start-up's plan to shave $1200 a year off household power bills

30 Jun 05:00 PM
Premium
Small Business: Kiwi pickle brand processes 100 tonnes as business booms

Small Business: Kiwi pickle brand processes 100 tonnes as business booms

29 Jun 05:00 PM
Solar bat monitors uncover secrets of Auckland’s night sky
sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP
search by queryly Advanced Search