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Accommodation helps drive 'modest' lift in retail activity

Author
Cameron Smith,
Publish Date
Mon, 24 Feb 2025, 12:01pm

Accommodation helps drive 'modest' lift in retail activity

Author
Cameron Smith,
Publish Date
Mon, 24 Feb 2025, 12:01pm

Retail activity saw a modest lift in the December quarter, driven by accommodation services, Stats NZ said today.

The retail trade survey showed the total volume of seasonally adjusted retail sales for the December quarter was $25 billion, up 0.9% compared with the September quarter.

The total value of seasonally adjusted retail sales rose by 1.4% ($422 million) to $30b.

“In the December quarter we saw a modest increase in retail activity, with growth across most industries,” economic indicators spokesman Michael Heslop said.

Stats NZ’s retail trade survey measures the sales turnover and stock levels of a wide range of businesses that provide household and personal goods and services from retailers including petrol stations, supermarkets, department stores, cafes and restaurants and hotels and motels.

Accommodation was one of the biggest drivers of the quarterly increase, with sales values up 11% ($141m) and sales volumes increasing by 7.6%.

Sales values for recreational goods retailing rose by 5.1% ($38m).

Food and beverage services experienced a lift in sales values of 3.3% ($130m) with electrical and electronic goods retailing up 3.3% ($29m).

Eleven of the 15 industries had higher seasonally adjusted sales values in the December quarter compared with the September quarter.

Electrical and electronic goods retailing also saw a 5.1% lift in sales volumes, followed by department stores, up 4.2%.

Ten of the 15 industries had higher seasonally adjusted sales volumes.

Otago was one of the leading regions with seasonally adjusted sales values rising by 7.8% ($125m) in the December quarter compared with the previous quarter.

Auckland rose 1.3% ($149m), while Canterbury was up 1.8% ($72m) and Waikato rose 2.5% ($67m).

All 16 regions had higher seasonally adjusted sales values over the quarter.

On an annual basis, the total value of actual retail sales for the December 2024 quarter was $33b, up 0.2% ($60m), compared with the December 2023 quarter.

Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Heraldin 2015 and has covered business and sports. He reports on topics including retail, small business, the workplace and macroeconomics.

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