New Zealanders are increasingly reaching for their phones and laptops instead of heading to the shops, as online spending grows significantly faster than spending in physical stores.
Online spending rose 12% in the first half of 2026 compared with the same period last year, according to the latest NZ Post data.
By comparison, spending in physical stores increased just 2%.
The difference is also showing up at the checkout, with the average online basket now worth $120 — more than double the average $54 spent in-store.
For retailers, it is creating a balancing act between the convenience of selling online and the experience that comes with having a shopfront.
Browsing moves to the couch
At clothing retailer Isla Maree, around 82% of the business' sales were now made online.
Owner Stephanie Marsters said customers were increasingly doing their browsing before they ever walked through the shop door.
"It's just convenient. Buying online is so convenient now. You can sit on your couch at night, browsing hundreds of stores, compare prices, read reviews … and it gets delivered straight to your door."
"They're doing the browsing online and so when they come in they know exactly what they're coming in for."
But she said there were still things a website could not replicate.
"There's something different about coming in store and letting the girls help you put an actual outfit together. You can't do that online."
A physical store also helped establish trust in a crowded online marketplace, she said.
"There's so many online stores now and you think, 'Oh my God, is this legit or is it just a scam?'
"So I think having bricks and mortar is definitely good for social proof."
That aligns with NZ Post research showing shoppers are increasingly looking for signs that an online retailer is legitimate, including independent reviews, a physical address and social media presence.
When the cost of a shopfront becomes too much
For retailer Rapt, the equation ultimately landed differently.
The family business was founded in 2007 and had operated several physical stores over the years, including a store at Auckland's Botany Town Centre.
But earlier this year, owner Anj Kelly closed the doors and moved the business entirely online.
"I think it really is the perfect storm of a changing market but also increased costs across the board," Kelly said.
"You've got commercial rents that have gone sky high, you've got power that's gone up, you've got staff costs that have gone up.
"Every aspect of your cost of business has gone up and it's really untenable to carry on with bricks and mortar when you're in that situation."
Kelly said Covid-19 had been a turning point for the way customers shopped.
Before the pandemic, foot traffic followed a relatively predictable pattern through the week. Afterwards, she said that changed.
"We just ended up with foot traffic that was so unpredictable we couldn't staff for it properly."
At the same time, Rapt's online business was growing, with Kelly saying its online presence had recorded growth of around 30% to 40% year-on-year.
"It is definitely significantly cheaper, but you also take a pretty large drop in revenue," she said.
And despite moving fully online, Rapt has already found there are still customers who want to shop face-to-face.
The business is planning a pop-up store in Ashburton later this year after receiving demand from shoppers wanting to see, touch and try on clothing before buying it.
Kelly said that was particularly important for some older customers.
"We are feeling that drive to still have to have that in-person experience."
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