Retail volumes and values up in December quarter

The volume of seasonally adjusted total retail sales rose 1.0 percent in the December 2009 quarter, Statistics New Zealand said today. "Retail sales volumes have now risen for three consecutive quarters, but have still only regained a quarter of the ground lost since March 2007's high point," business statistics manager Kathy Connolly said.

The volume of core retailing, which excludes the four vehicle-related industries, also rose – up 1.3 percent. Appliance retailing was the main contributor to this increase, as it has been for the past three quarters.

The value of total retail sales rose 1.0 percent ($171 million) in the December 2009 quarter, while core retail rose 0.6 percent ($77 million). "This is also the third consecutive quarter of increases in total sales values, and follows one year of decline," Kathy Connolly added. The increase in total sales was led by automotive fuel retailing (up 5.7 percent or $88 million) and cafes and restaurants (up 6.3 percent or $61 million). Fuel retail values rose despite a 2.0 percent drop in volumes, implying an increase in prices.

Following increases of 0.2 percent and 0.8 percent in the October and November 2009 months respectively, total retail sales showed no overall movement in the December 2009 month. This flatness is the result of an unprecedented fall of 1.8 percent ($76 million) in the core retailing industries being balanced by a 5.6 percent ($76 million) rise in the vehicle-related industries, the largest monthly gain since April 1997.

By industry, the biggest falls were in core retailing: supermarket and grocery stores were down 2.1 percent or $27 million and department stores were down 4.7 percent or $15 million. By far the largest rises were vehicle-related: motor vehicle retailing was up 7.6 percent or $41 million and automotive fuel retailing was up 6.2 percent or $33 million.

Geoff Bascand 12 February 2010

Government Statistician