New Zealand’s retail sector is showing signs of resilience, with consumer spending back into the black following a challenging period of high fuel prices and economic uncertainty.
The latest data from the Cuscal Paymark (previously Worldline) network reveals that consumer spending in May 2026 reached NZD 3.853 billion. This represents a 1.2 percent increase compared to May 2025, a welcome bounce-back after spending dipped by -0.1 percent in April.
"After a challenging period where skyrocketing fuel costs drained household budgets, these latest figures provide an encouraging signal for some parts of the retail sector," said Retail NZ chief executive, Carolyn Young.
While the overall value of spending is up, Retail NZ notes that the retail environment remains complex. The 1.2 percent growth in May was largely fuelled by a higher average transaction value rather than an increase in shopping volume, with the actual number of transactions down -1.1 percent year-on-year. This indicates that rising prices are still shaping the retail landscape.
The positive momentum in May was heavily driven by spending in supermarkets, grocery stores, restaurants, and cafés.
"We are seeing consumers begin to re-engage, though people are preferring to spend on eating out rather than making significant purchases."
Regionally, growth was strongest in key dairy farming areas, expecting a strong payout from Fonterra. The Waikato region led the country with an impressive +4.6 percent annual increase in core retail spending, followed closely by Canterbury at +2.8 percent.
"The strong performance in Waikato and Canterbury highlights the critical link between regional economic confidence and retail health," Young added.
The data also highlighted how vital major events are to local business communities. A standout example occurred the day after Christchurch's new Te Kaha stadium hosted Six60, an event which helped boost the local retail economy by 10.6 percent that weekend.
"Operating in the retail sector is still very challenging but the positive growth in May is welcome,” Young said.
"It shows some regions remain resilient and gives us a foundation of cautious optimism as we head into the winter months. We’ll wait to see if the broader Stats NZ Electronic Card data released later this month gives us reasons to be cheerful."
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