New Zealand retail activity increased 0.9% in the March 2026 quarter. Photo / 123rf
By RNZ
Retail activity rose again in the March quarter, with higher fuel prices lifting spending even as underlying demand remained subdued.
Stats NZ figures show the volume of retail sales increased 0.9% in the March quarter compared with the previous three months, matching the rate of growth in the December 2025 quarter.
The figures are adjusted for price inflation and seasonal effects.
Growth was broad-based, with 10 of the 15 retail industries posting higher sales volumes.
Economic indicators spokesperson Michelle Feyen said that “the increase in activity this quarter was mainly driven by supermarket and grocery stores; hardware, building and garden supplies; accommodation; and pharmaceutical and other store-based retailing”.
Thirteen of the 16 regions had higher retail sales values in the March quarter compared with the December quarter, after adjusting for seasonal effects.
Sales in the South Island increased by 2.9% to $8.1 billion, while sales in the North Island increased by 2% to $24b.
“West Coast and Otago regions saw the largest percentage increases in retail sales this quarter, relative to the previous quarter,” Feyen said.
However, the data shows a divergence between spending and real activity, particularly in fuel.
The value of fuel sales jumped 5.9%, but volumes rose just 0.2%, indicating higher prices rather than increased demand.
Fuel retailers also lifted their stock levels sharply, with inventories rising 42% to $290 million.
Overall, seasonally adjusted retail sales values rose 2.2% to $32b, while volumes – which strip out inflation – suggest more modest growth in underlying consumption.
Stats NZ said while retail activity was rising at a similar pace to the previous quarter, fuel sales had only partly reflected global tensions.
It said the full impact of higher oil prices linked to the Middle East conflict was expected to show up in the June quarter data.
-RNZ