Quarterly sales pulled down by fuel and vehicles

The seasonally adjusted value of total retail sales fell 1.1 percent ($179 million) in the December 2008 quarter, Statistics New Zealand said today. This is the biggest quarterly fall since March 1997, when sales fell 1.6 percent. In December 2008 the largest falls were in automotive fuel retailing, down 8.2 percent ($151 million) and motor vehicle retailing, down 5.3 percent ($96 million).

The value of core retailing, which excludes the vehicle-related industries, rose by 0.6 percent ($77 million). Thirteen of the 20 core retail industries had increased sales. The biggest increase was in supermarket and grocery stores, up 1.3 percent ($45 million). This was partly offset by a decrease in department store sales of 3.1 percent ($30 million), the biggest decrease in the latest quarter.

Since the March 2008 quarter the trend in total retail sales values has fallen 1.5 percent. The trend in the value of core sales is still rising but, since mid-2007 has slowed markedly.

The seasonally adjusted total sales volume fell 0.6 percent in the December 2008 quarter. For each quarter in 2008 the biggest contributor to the falling sales volume was motor vehicle retailing, this quarter down 4.9 percent. By contrast, sales volumes in automotive fuel retailing increased 3.5 percent this quarter.

There was no change in the core retail industries sales volume as increases in six industries, led by appliance retailing, were balanced by decreases in 14 industries, led by department stores, and supermarket and grocery stores.

The trend in total retail sales volumes has fallen 4.2 percent since the September 2007 quarter. This is the longest and fastest period of decline since the series began in September 1995. The trend in core retail sales volumes is also falling but, since June 2008, the rate of fall has eased.

In the month of December 2008, seasonally adjusted total retail sales fell 1.0 percent ($57 million). The biggest decrease was in automotive fuel retailing, down 8.4 percent ($47 million), and the biggest increase in motor vehicle retailing, up 2.9 percent ($17 million). Core retailing fell 0.6 percent ($25 million) with sales in half of the core industries decreasing and half increasing. The biggest decrease was in supermarket and grocery stores and the biggest increase was in appliance retailing.