Learn how businesses like yours are faring in New Zealand right now – and learn about key retail innovations – in this quarterly macroeconomic update.
As New Zealand shakes off winter and steps into spring, retail confidence is slowly but surely beginning to rise.
“The situation remains very challenging, but summer is around the corner, which is our key selling time,” says Chris Wilkinson from First Retail Group.
Yes, inflation increased. But consumer confidence has bounced back after last quarter’s low, and the real headline? Retail spend has now climbed for three straight quarters. But the increase is modest.
“Right now, consumers are working hard to retire debt after high inflationary times,” says Wilkinson, who adds that Kiwis are spending on experiences, as well as pets, health and wellness. “Clothing, though, is still suffering.”
Juanita Neville-Te Rito of RX Group agrees, adding: “Consumers are more price-sensitive, and many are delaying purchases of non-essentials. Fast fashion and online marketplaces continue to erode margins; clearances and mid-year sales are active but discounting is aggressive.”
“Retailers are cautiously optimistic,” she adds. “But there’s still plenty of concern, especially around inflation, costs and soft consumer sentiment.”
Recent retail innovations
Facial recognition technology (FRT)
The use of FRT is back in the spotlight as Foodstuffs North Island won the Innovation – Best Use of Technology Award at the Retail NZ Awards 2025, recognising the co-op’s groundbreaking use of facial recognition technology to improve safety in supermarkets. An inquiry by the NZ Office of the Privacy Commissioner[iv] ruled in June that the level of intrusion into customer privacy was justified.
Faster fashion
Resale fashion platform Designer Wardrobe (DW) has introduced an AI-powered tool to streamline its product listing process. The new feature makes short work of creating a listing on the platform by generating the necessary information from vendors’ photos, reducing the time it takes to create the average listing of five items from 10 minutes to less than 30 seconds.
IKEA arrives
Swedish flatpack giant IKEA will open its doors on 4 December in Tamaki Makaurau Auckland. The NZ app and website will launch at the same time for online sales. As well as an expansive showroom, market hall and self-serve warehouse, the space will house three food options — Swedish Bistro, the Swedish Restaurant and the Swedish Food Market.
Sources: 1: Statistics New Zealand
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