Retail sales recover in January

Following a disappointing Christmas for retailers, the month of January showed a national pickup with the total retail sales trend continuing to rise.

However the increase in core retail sales was less strong, meaning the total sales were led higher by spending on vehicles and fuel.

The Statistics New Zealand retail trade survey released today shows seasonally adjusted total retail sales rose 0.8 per cent or by $42 million in January 2010 from the previous month, Statistics New Zealand.

''The increase in sales was led by the vehicle-related industries, with a lesser rise in core retailing,'' business statistics manager Louise Holmes-Oliver said.

Leading the increase were automotive fuel retailing  up 2.8 per cent or $15m  and motor vehicle retailing  up 2.0 per cent or $12m.

Core retail sales  which exclude the four vehicle-related industries  rose 0.3 per cent ($12 million), following a 2.0 per cent fall in December 2009.

The increase in core retailing was led by recreational goods retailing and accommodation; these were the only two industries in core retailing with movements exceeding $5m, Holmes-Oliver added.

Recreation goods retailing sales were up 4.8 per cent or $9m, following a 4.9 per cent fall in December; while accommodation sales were up 3 per cent or $6m. In the other retailing sector sales were down 2 per cent or $5m.

The total retail sales trend continued to rise, and had increased 3.3 percent since February 2009, she said.
Having been mostly flat between mid-2007 and early 2009, the core retail sales trend strengthened slightly in mid-2009. However, the sales trend has eased again since then, and is now flat.

Seasonally adjusted sales were up in the North Island  up 1.5 per cent  and flat in the South Island  down just 0.2 per cent.
The only region with a sales decrease was Canterbury, down 0.9 per cent. All regional trends have been rising at various rates, apart from Canterbury's trend which has declined since October 2009.

- © Fairfax NZ News