Retail sales flat, volumes fall

Seasonally adjusted total retail sales for the March 2008 quarter remained at the same level as theDecember 2007 quarter, Statistics New Zealand said today.

A 4.7 percent ($163 million) increase insupermarket and grocery store sales offset a 6.9 percent ($147 million) decrease in motor vehicle retailing.

The seasonally adjusted core retail group (which excludes vehicle-related industries) rose 0.9 percent.

The total volume of seasonally adjusted retail sales fell 1.2 percent in the March 2008 quarter.

This is thelargest quarterly volume decrease since March 1997, and reflects that 17 of the 24 retail industries recordeddecreased sales volumes this quarter, including a 6.0 percent decrease in motor vehicle retailing.

Thevolume of sales per head of population fell 1.5 percent in the March 2008 quarter.The total retail sales trend has eased following a period of strong growth in late 2006 and early 2007.

Thetrend for total retail volumes, which had been generally rising since June 1998, has fallen 1.0 percent sincethe June 2007 quarter.

In the March month, seasonally adjusted total retail sales decreased 1.2 percent ($67 million). Motor vehicleretailing accounted for a large part ($35 million) of the fall in total retail sales.

The automotive electricalservices, smash repairing and tyre retailing industry and the automotive repair and services nec industryrecorded decreases of 6.9 percent and 4.4 percent, respectively.

Supermarket and grocery store sales fell1.0 percent.Easter has the potential to impact upon the seasonally adjusted retail trade figures when it falls in March(rather than April), as it has in 2008.

Analysis has determined that the effect of this was minimal this year.

Geoff BascandGovernment Statistician

There is a companion Hot Off The Press information release published – Retail Trade Survey: March2008 quarter.