Retail spending subdued ahead of Christmas

Core retail spending through the Paymark network fell 1.0 percent in October compared with a year earlier, with only groceries and petrol ahead of 2025. Ten of 17 regions went backwards.

Retailers are heading into the Christmas trading period on the back of another soft month, with core retail spending through the Paymark network down 1.0 percent in October compared with the same month last year.

Spending across Paymark’s core retail merchants reached $3.682 billion for the month. The annual comparison is adjusted for merchants moving to or from the network.

Paymark Chief Sales Officer Bruce Proffit says the figures reflected the challenging conditions retailers had faced for much of the year.

“Spending on groceries and petrol remained ahead of last year, but spending across most other retail categories was lower than in October 2025,” he says.

“With the busy Christmas period approaching, retailers will be hoping that events such as Black Friday help bring more shoppers through their physical and digital doors.”

Six regions recorded annual growth, led by Gisborne (up 1.9 percent), Palmerston North (up 1.7 percent) and Wairarapa (up 1.6 percent). The West Coast was flat.

Marlborough recorded the steepest fall, down 9.4 percent, followed by Bay of Plenty (down 3.3 percent) and Canterbury (down 2.4 percent). Auckland/Northland, the largest market at $1.373 billion, was down 0.6 percent, and Wellington slipped 0.4 percent.

Region Spending ($m) Annual change
Auckland/Northland 1,373 -0.6%
Waikato 313 -0.9%
Bay of Plenty 247 -3.3%
Gisborne 34 +1.9%
Taranaki 84 -2.3%
Hawke’s Bay 137 +0.7%
Whanganui 52 +0.8%
Palmerston North 114 +1.7%
Wairarapa 44 +1.6%
Wellington 308 -0.4%
Nelson 75 -1.5%
Marlborough 43 -9.4%
West Coast 28 0.0%
Canterbury 449 -2.4%
South Canterbury 61 -1.1%
Otago 226 -1.2%
Southland 91 +0.8%
New Zealand 3,682 -1.0%

Source: Paymark. Core retail merchants, all cards, October 2026. Annual change excludes large clients moving to or from the network.

For the first time, Paymark’s monthly update also includes spending through Online EFTPOS, which lets shoppers pay directly from their bank account without a debit or credit card.

Online EFTPOS spending reached $33.4 million in October, up 6.8 percent on a year earlier.

Proffit says digital payment channels were continuing to grow as more New Zealanders shopped online, and he expected online activity to increase heading into Black Friday and the Christmas shopping period.

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