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Spending on retail cards across the country fell more than $ 2.6 billion, Stats NZ said today, as nonessential companies temporarily closed during the shutdown.
Retail statistics manager Kathy Hicks said a significant drop was expected.
“The record decrease in spending was a direct result of business hibernation due to the Covid-19 crash.”
Total retail sales fell $ 2.6 billion (47%) in April 2020, after adjusting for seasonal effects. This is the largest decline in both dollar terms and percentage change since the series began in 2002.
“The $ 2.6 billion drop is the equivalent of every person in the country spending approximately $ 520 less in April than in March,” Hicks said.
All sectors showed record falls in April. Furniture, hardware, and (durable) appliances led the retail industry to drop in value, just over $ 1 billion (72%) since March this year.
Hotel sales, which include lodging, cafes and restaurants, had the next biggest drop, with a drop of $ 721 million (93%).
“New Zealand was under the level 4 blockade for everyone except the last three days of April. The impact of the restrictions on the number of foreign visitors to New Zealand contributed greatly to the drop in hospitality,” Hicks said.
“There was a small recovery in hospitality sales because people were able to buy takeout through contactless payment, when the country moved to level 3.”
Restrictions on non-essential travel for the month, as well as lower pump prices, caused fuel spending to drop $ 291 million (60%) compared to March.
