Auckland region leads retail sales fall

Nationwide consumer spending fell significantly in the September 2021 quarter, influenced by a record fall in retail sales for the Auckland region, Stats NZ said today.

With price effects included, the seasonally adjusted total sales values fell 7.0 percent ($2.0 billion) compared with the 4.2 percent ($1.1 billion) rise in the June 2021 quarter.

The Auckland region dominated the national fall with a record decrease of 15 percent (1.5 billion) in the September 2021 quarter, compared with the 6.2 percent ($618 million) rise in the June 2021 quarter.

This region accounts for 35 percent of the national sales, but it has significantly contributed 78 percent to the large fall in total sales values this quarter.

QuarterAucklandTotal New Zealand
Sep-160.81.5
Dec-161.32.0
Mar-171.62.4
Jun-170.51.1
Sep-171.60.9
Dec-170.41.5
Mar-180.80.2
Jun-181.30.9
Sep-180.61.1
Dec-181.81.9
Mar-190.50.4
Jun-190.6-0.1
Sep-191.91.8
Dec-192.21.3
Mar-20-1.5-0.7
Jun-20-16-18
Sep-202229
Dec-201.8-1.2
Mar-213.02.6
Jun-216.24.2
Sep-21-15-7.0

The Auckland region remained in the extended level 4 lockdown for 5 weeks from 17 August to 21 September, with only essential businesses open. The rest of New Zealand moved to alert level 3 on 31 August, then to alert level 2 on 7 September, with some further restrictions for the Northland region.

Lockdowns significantly impact retail sales volumes

After adjusting for price and seasonal effects, the volume of total retail sales fell 8.1 percent in the September 2021 quarter, compared with the 3.3 percent rise in the June 2021 quarter.

“The country’s lockdowns in August and September resulted in lower sales across most retail industries,” retail trade manager Sue Chapman said.

Actual Seasonally adjusted
Sep-162067965049121600345520
Dec-162369712555121858033820
Mar-172193037507322235533110
Jun-172185674716222542697940
Sep-172163473886622698602900
Dec-172498461269322968917660
Mar-182255222927422993223040
Jun-182253419171523190395820
Sep-182221969169023261137810
Dec-182585544260023663297420
Mar-192330755886023903222720
Jun-192318548866023808595890
Sep-192322065414024243362420
Dec-192670907770024461085720
Mar-202384511449024189225270
Jun-201989389159020423436410
Sep-202509606822026219396250
Dec-202797768408025626853670
Mar-212542665399026210277420
Jun-212651166500027072269280
Sep-212380270677024886170800

Food and beverage services had the largest fall, down 19 percent, compared with the 5.2 percent increase in the June 2021 quarter.

Motor vehicles and parts (down 12 percent), department stores (down 24 percent), and hardware and building supplies (down 15 percent) also contributed to the significant sales volume fall in the September 2021 quarter compared with the June 2021 quarter.

“Several comments from vehicle dealers and building supply owners stated that extended lockdowns, increased inventory costs, and increased supply issues led to lower sales and higher stocks this quarter,” Ms Chapman said.

Supermarket and grocery sales had the largest rise in sales, up 7.5 percent after the modest increase of 0.5 percent in the June 2021 quarter.

“The surge in supermarket sales had repeated what was seen in the first national lockdown last year, when grocery sales jumped to a record 8.6 percent rise in the March 2020 quarter,” Ms Chapman said.

Industry (ANZSIC06)201920202021
Supermarket and grocery stores467840990248820053425167743987
Department stores162304652018274215181423275749
“Hardware206473698823558220152109575365
building343489428739008367893526487656
and garden supplies”254753858223987488852116500146
Motor vehicle and parts retailing
Food and beverage services

In actual terms the total retail sales values were $25 billion in the September 2021 quarter, falling 1.7 percent ($438 million) from the stronger September quarter of 2020.

/Stats NZ Public Release. View in full here.