Record fall in retail volumes

The seasonally adjusted total sales volume fell a record 2.9 percent in the March 2009 quarter, Statistics
New Zealand said today. This is double the previous largest falls of 1.4 percent seen in March 1997 and
June 2008. For the sixth quarter in succession, the biggest contributor to the fall in sales volumes
was motor vehicle retailing, down 11.4 percent in the latest quarter.

Sales volumes in core retailing, which excludes the vehicle-related industries, fell a record 1.2 percent in the
March 2009 quarter. This is also double the previous largest falls of 0.6 percent seen in June 2007 and
June 2008. Volumes fell in 14 of the 20 core industries, led by appliance retailing, down 5.9 percent, and
department stores, down 3.6 percent. Supermarket and grocery stores, up 1.9 percent, increased the most.
The trend in total retail sales volumes has been in decline since the June 2007 quarter, falling 6.7 percent
since then, the longest and fastest period of decline since the series began in September 1995. The trend in

core retail sales volumes has been flat or in decline since the June 2007 quarter and has fallen 1.9 percent
since then.

The seasonally adjusted value of total retail sales fell 1.5 percent ($236 million) in the March 2009 quarter.
This was the fourth consecutive quarterly fall, and the largest since March 1997 when sales fell 1.6 percent.
The biggest contributors to the latest fall were motor vehicle retailing, down 9.2 percent ($156 million) and
automotive fuel retailing, down 6.6 percent ($112 million).

The value of core retailing, rose 0.3 percent ($41 million) in the latest quarter. Only 7 of the 20 core retail
industries had sales increases, the largest coming from supermarket and grocery stores, up 3.3 percent
($119 million). The largest offsetting decrease was in appliance retailing, down 6.1 percent ($39 million).
The trend in total retail sales values has been falling for the last year and is now 2.8 percent lower than in
the March 2008 quarter. This is the longest period of decline since the series began. The trend in the value
of core sales is still rising but has slowed markedly since mid-2007.

In the month of March 2009, seasonally adjusted total retail sales fell 0.4 percent ($22 million), led by a 7.4
percent ($41 million) drop in automotive fuel retailing. In 19 of the 24 industries, sales changed little from
February: up or down $4 million or less. Core retailing rose 0.5 percent ($20 million), with sales up in 15 of
the 20 core industries. The largest increase came from cafes and restaurants, up 4.4 percent ($14 million).

Geoff Bascand
Government Statistician
15 May 2009
END

See also the Hot Off The Press information release Retail Trade Survey: March 2009 quarter.