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New spending data suggests a lift in hospitality spending that could signal improving demand for tourism and visitor experiences.
Latest electronic card spending figures from Stats NZ show hospitality spending rose 3.8 per cent year-on-year in February, part of a broader 2.4 per cent increase across core retail sectors.
Retail NZ chief executive Carolyn Young says the figures will provide some encouragement after a volatile year for retailers.
“Actual electronic card transactions for February were up 2.4 per cent year-on-year across core retail as a whole, a further improvement on the 1.1 per cent rise seen last month,” Carolyn says.
Carolyn says the lift in hospitality spending, alongside gains in consumables and apparel, is a welcome sign after a difficult period for many businesses.
“Consumables, hospitality and apparel all had a decent boost in spend, which is exactly what the retail sector needs after a bumpy end to 2025,” she says.
Hospitality spending rose 3.8 per cent, while consumables increased 3.1 per cent and apparel spending rose 2.1 per cent year-on-year.
However, Carolyn says the overall retail increase remains slightly below the current inflation rate of 3.1 per cent, highlighting continued caution among consumers.
“That should not take away from the good news behind this data, but it does illustrate there is still further improvement needed before retailers can be confident that spending caution is easing,” she says.
Carolyn says rising fuel prices linked to tensions in Iran could also affect discretionary spending in the coming months.
Another emerging trend is the increasing use of credit cards, which now account for 71 per cent of spending, compared with 29 per cent on debit cards.
“So while today’s figures will put a smile on faces, retailers will remain cautious about what might be in store for them over the next few months,” Carolyn says.
