Underlying core spending on January 21, 2026, was down 5.6% compared to the same day last year, with spending falling from $125 million to $118m.

Proffit said the negative effect on spending continued in the Bay of Plenty, Gisborne and Waikato (which includes Coromandel) over the Auckland Anniversary long weekend.

Hospitality merchants appear to have been hit the hardest, with total hospitality spending over the four days ending January 26 for the three regions plus Auckland/Northland of $71.2m, down 8.7% on Auckland Anniversary last year.

Despite not facing similar weather conditions, hospitality spending for Wellington Anniversary weekend in Palmerston North, Whanganui, Wairarapa and Wellington was down 7%.

Proffit said it appeared to be due to local economy factors rather than weather-related ones.

“The net effect of the storms over the month resulted in Bay of Plenty and Gisborne being amongst the weakest regions in the country in terms of the annual change in spending.”

Annual growth of core retail spending through Worldline NZ’s payments network in January 2026 was the lowest in Bay of Plenty (down 3.4%), followed by Taranaki (down 3%) and Gisborne (down 1%).

Growth was the highest in Whanganui (up 2.5%), Hawke’s Bay (up 1.9%) and Palmerston North (up 1.9%).

Auckland/Northland recorded modest growth of 1.3%, with Canterbury up 1.6%, Waikato up 1.4% and Wellington down 0.7%.

Mixed month for retailers

Retail NZ chief executive Carolyn Young said it was great to see some positive sales to start the year.

“It’s early days and it is off a low base, but it gives us something to be upbeat about following the disappointing December sales and yesterday’s unemployment data,” Young said.

The latest unemployment rate from Stats NZ rose to 5.4% for the December quarter, slightly higher than analyst expectations and is now at its highest rate since September 2015.

Young said the uptick would mean retailers will be preparing for some flat, or even slow months ahead as consumers continue to focus on just getting by.

“These numbers are another sign that it could be some time before consumer confidence improves to a point where we will see an upturn in sales in non-core expenses.

“Retailers have been experiencing tough trading conditions for some time now, and while business confidence is largely positive overall, it is clear it could be some time before New Zealanders feel confident enough in the economic conditions to increase their discretionary spending.”

She said many retailers will be feeling as though they are treading water as the economy “moves sideways, rather than forwards”, and that it was just another example of the difficult environment retailers are faced with.

“However, many retailers are choosing to remain hopeful, with credit demand increasing 13% for that same period, reflecting some confidence among business owners to invest further into their business.”

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.