Retail NZ says some businesses are "hanging in there" ahead of the busiest time of the year for the sector, buoyed by a small uplift from October's card spending figures.
The latest Electronic Card Transaction data from Statistics New Zealand showed total actual retail card spending in October increased by 0.8%, year on year, while the seasonally-adjusted numbers increased by 0.2%.
The actual monthly values showed consumables (up 4.3%) and hospitality (up 0.7%) outshone durables (down -2.5%) and apparel (down -2.3%).
Retail NZ chief executive Carolyn Young said retailers were focused on the actual card spend, rather than the seasonally adjusted numbers due to the cyclical nature of the sector.
Young said some "businesses have been hanging in there, waiting to see an improvement in the economy".
"As we head into the important Black Friday, Christmas and Boxing Day sales period, it's going to be important to see continued improvements across the whole sector."
She said it was "almost a relief to continue to see some positive news in retail".
"While there is some good news there, more is needed to share the benefits right across retail," she said.
She said the actual card spend in October was below the current rate of inflation.
"The retail sector remains under significant strain, with businesses advising that they are absorbing as many cost increases as they can, working harder than ever as margins are being squeezed, creating significant challenges to remain open.:
There have been liquidations and closures across the sector this year, including several well-established companies and long-running New Zealand brands.
"We are still seeing liquidations and closures across the sector, although some regional areas are showing signs of improved trading on the back of strong dairy prices," Young said.
"We remain hopeful that the Reserve Bank's recent OCR cut to 2.5% signals potential relief ahead. However, retailers are not noticing any immediate change in consumer spending."
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