New data has shown that the electronic card transaction rate was higher during May 2026, with strong year-on-year growth.
Businesses will be buoyed by the latest Stats NZ Electronic Card Transaction data, which shows the strongest year-on-year growth in actual core retail sales since January 2024.
“The core retail spending was up 2.8 percent in May 2026 compared to a year earlier - the highest rise in more than two years,” said Retail NZ Chief Executive, Carolyn Young.
“Most impressively, the durables sector, which includes furniture, hardware, electronics, and pharmacies, jumped 4.8 percent on 2025 figures.”
“We are seeing the evidence of the 'IKEA Effect' boosting furniture sales. With fuel prices finally coming down from the highs of March and April, people who had put off buying major items are out spending again, heavily supported by King’s Birthday weekend promotions,” Young said.
The hospitality sector also performed well, up 3.2 percent on May last year.
Young said a key area of spending was seen in a number of high-profile sporting and music events over the past month.
“People are spending with local retailers, then choosing to make a night of it by heading out to local restaurants and bars.”
In contrast, growth in consumables was modest compared to recent trends.
“Kiwis are still being strategic with day-to-day budgets. We know people are actively switching to cheaper brands to bring down their weekly grocery spending, with thought behind every dollar spent.”
Young said overall, it is highly encouraging to see retail seeing some growth despite recent international turbulence.
The non-retail (excluding services) category increased NZD 60 million (2.6 percent) from April 2026. This category includes medical and other health care, travel and tour arrangement, postal and courier delivery, and other non-retail industries.
The services category was up NZD 0.6 million (0.2 percent). This category includes repair and maintenance, and personal care, funeral, and other personal services.
The total value of electronic card spending, including the two non-retail categories (services and other non-retail), increased from April 2026, up NZD 212 million (2.2 percent).
In actual terms, cardholders made 178 million transactions across all industries in May 2026, with an average value of NZD 54 per transaction. The total amount spent using electronic cards was NZD 9.6 billion.
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