Retail spending rebounds in December

Retail sales rebounded in the last quarter of 2021 with rises in many industries, almost reversing the falls recorded in the lockdown period of the September 2021 quarter, Stats NZ said today.

After price effects were removed the seasonal adjusted total sales volumes rose 8.6 percent in the December 2021 quarter, compared to the 8.2 percent fall seen in the September 2021 quarter.

Actual Seasonally adjusted
Dec-162369712555121897048530
Mar-172193037507322210104000
Jun-172185674716222537363760
Sep-172163473886622722299840
Dec-172498461269323006879800
Mar-182255222927422970187610
Jun-182253419171523179415300
Sep-182221969169023279938120
Dec-182585544260023686588120
Mar-192330755886023902116520
Jun-192318548866023781360150
Sep-192322065414024244244910
Dec-192670907770024517365410
Mar-202384511449024172965240
Jun-201989389159020406702660
Sep-202509606822026143912380
Dec-202797768408025613110220
Mar-212542665399026258428870
Jun-212651166500027034581640
Sep-212380270677024816459620
Dec-212919934117026961062690

Two industries dominated the increase in the December quarter. Strong rises were seen in motor vehicles and parts retailing, up 22 percent, and in the hardware, building, and garden supplies industry, up 33 percent. These industries had falls of 13 and 15 percent respectively, in the September 2021 quarter.

Motor vehicle dealers and building supply owners experienced an increase in sales over this quarter. Higher vehicle imports and registrations were seen this quarter, along with increased construction activity, particularly in residential housing with record numbers of consents issued monthly since early 2021.

"We are most likely seeing a surge in sales following the longer period of Covid-19 lockdowns, especially in the Auckland region. Some New Zealanders maybe choosing to upgrade their vehicles or undertake home improvements rather than spending on overseas holidays," retail business manager Evie Rolinson-Purchase said.

Department stores had the next largest rise in sales volumes, up 19 percent, followed by the food and beverage services industry with a rise of 12 percent in the December 2021 quarter.

Industry (ANZSIC06)MarchJuneSeptemberDecember
Motor vehicle and parts retailing3879309904400539610134993912864254888543
"Hardware2436631936246244463020987089302781751686
building1850839205188165096214238296021687890264
and garden supplies"2486625314259062272521030756892352441912
Department stores729085902878945439773372194622305567
Food and beverage services4798284902481526461751491216714876634331
Accommodation
Supermarket and grocery stores

Industries with lower sales this quarter were supermarket and grocery stores, down 5.3 percent, and accommodation, down 20 percent, compared to the September 2021 quarter.

Boosted year-on-year sales values

In actual terms, using year-on-year movements, total retail sales values reached its highest level of $31 billion this quarter, up 8.8 percent ($2.5 billion) on the December 2020 quarter.

Hardware, building, and garden supplies up 21 percent ($595 million) and motor vehicles and parts up 16 percent ($588 million) showed the largest increases compared to the same period a year ago.

"We've seen higher levels of spending across many industry sectors in this last quarter of the year. However, while many retailing sectors are showing increases, hospitality businesses continue to struggle without the international visitors to New Zealand," Ms Rolinson-Purchase said.

Industry (ANZSIC06)201920202021
"Hardware242461889528128089133407649980
building333247744737426828764330312051
and garden supplies"174055787718957518951876169754
Motor vehicle and parts retailing330922727433087396863218370569
Department stores1183136720967911419854590075
Food and beverage services
Accommodation

The largest falls were in the hospitality sector with accommodation, down 12 percent ($113 million), while food and beverage services were down 2.7 percent ($90 million) compared to the December 2020 quarter.

Retail trade dashboard

Stats NZ's retail trade dashboard has further details on retail industries over time - view, compare, and download data for specific retail industries, or data by geographic regions.

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