Retailing in New Zealand


Retailing in New Zealand is an important sector in the economy of New Zealand, as a channel for a large proportion of household spending and international visitor spending.
The overall size of the sector has been increasing since the end of the 1997 Asian financial crisis, with retail sales increasing by 30% between 1999 and 2005. One contributing factor was the growth of larger stores with greater buying power and economies of scale, at the cost of smaller bricks and mortar merchants. Another contributing factor was low price inflation, with the price of imported goods falling 12% during that period.
By 2004, about 15% of New Zealand businesses were retail outlets. These businesses accounted for 19% of total employment and 7.5% of the Gross Domestic Product with total sales of about $51 billion. Supermarket and grocery stores made up about 28% of non-auto sales and 16% of retail employees.
The beginning of the COVID-19 pandemic in New Zealand had a major impact on the retail sector. Sales dropped 15% in the June 2020 quarter before increasing 7.4% in the September 2020 quarter. The sector recovered faster than originally expected.
In 2021, BDO identified the key trends in the New Zealand retail sector to be rising staffing costs, increased online shopping, changing technology, and the need to improve efficiency without compromising customer experience.

Supermarkets and grocery stores

Sales values in the sector increased from $8.3531 billion in 2000 to $22.5867 billion in 2021. The number of businesses increased from 2,679 to 3,525. The number of employees increased from 46,700 to 62,600.

Foodstuffs

  • Four Square, established in 1925, has 224 stores.
  • New World, established in 1963, has 142 stores.
  • PAK'nSAVE, established in 1985, has 57 stores.
  • New World Metro, established in 2002, has four stores.

    Woolworths New Zealand

  • Woolworths, established in 1929, and again 2023, has 184 stores.
  • SuperValue, established in 1964, has 38 stores.
  • FreshChoice, established in 1995, has 33 stores.
  • Woolworths Metro, established in 2024, has four stores.

    Independent

  • Faro, established in 2006, has 7 stores, all in Auckland.
  • Night 'n Day, established in 1984, has 51 stores.

    Hardware, building and garden supplies

Sales values in the sector increased from $3,575.4 million in 2000 to $9,754 million in 2021. The number of businesses declined from 1,542 to 1,401. The number of employees increased from 13,000 to 23,800.

Home decorating

New Zealand has several petrol station chains and franchises which supply fuel for cars, motorbikes, trucks and boats.
The sector has undergone significant consolidation between 2000 and 2021. The number of businesses almost halved from 1,245 to 660. The number of employees also halved from 12,400 to 6,200.
Sales values in the sector increased from $3.4436 billion in 2000 to $7.642 billion in 2021. It reached a record high of $9.0095 billion in 2022.

Petrol stations

Sales values in the sector increased from $2,507.7 million in 2000 to $6,049.1 million in 2021.
The number of businesses has declined from 6,423 to 5,772. The number of employees increased from 19,000 to 23,600.

Pharmacies

Sales values in the sector increased from $2,556.1 million in 2000 to $5,774.6 million in 2021. The number of businesses decreased from 18 to 12. The number of employees has fluctuated from 18,700 to 19,700.

National chains

  • The Warehouse has 89 stores. It is part of The Warehouse Group, and opened its first store in Takapuna, Auckland in 1982.
  • Farmers has 59 stores. It is owned by James Pascoe Group and opened its first store in 1909.
  • Harvey Norman has 44 stores. The first store opened in Wairau Valley, Auckland in 1997.
  • Kmart has 21 stores. It is owned by Wesfarmers, and opened its first store in Henderson, Auckland in 1988.
  • EziBuy has six stores. It was established in Palmerston North Central in 1978.

    Regional department stores

  • Ballantynes is a Christchurch-based chain of two department stores established in 1854.
  • Smith & Caughey's, established in 1880, has a store in Auckland. Their second store in Newmarket, Auckland closed in 2024.
  • David Jones has had a store in Newmarket, Auckland since 2019. It previously had a store in Wellington CBD between 2016 and 2022.

    Defunct stores

  • Arthur Barnett was established in Dunedin Central in 1903. It had five stores by 1992, but was taken over by H & J Smith in 2015.
  • D.I.C. was established in Dunedin Central in 1884 and had 16 stores by 1988. It closed in 1992.
  • H & J Smith was an Invercargill-based chain of three stores established in 1900 and closed in 2023.
  • Kirkcaldie & Stains was established on Lambton Quay in Wellington CBD in 1863. It closed in 2016.
  • DEKA was a chain of department stores established in 1988 through the rebranding of Woolworths and McKenzies stores. It had 61 stores in 2000. The stores were closed or rebranded as Farmers stores in 2001.

    Electrical and electronic goods retailing

Sales values in the sector increased from $1,385.4 million in 2000 to $4,626.2 million in 2021. The number of businesses increased from 1,029 to 1,269. The number of employees increased from 5,100 to 8,600.

Electronic goods

The three major companies in the New Zealand telecommunications industry operate retail stores. Spark New Zealand has 63 stores. One NZ also has 63 stores. 2degrees has 59 stores.

Clothing, footwear and personal accessory retailing

Sales values in the sector increased from $1,811.1 million in 2000 to $3,942 million in 2021. The number of businesses increased from 2,442 to 2,865. The number of employees increased from 15,000 to 21,000.

Clothing