Retailers gearing up for Christmas, but will consumers be ready?

With just over 10 weeks until Christmas, retailers are already gearing up for the festive season by bringing on additional staff.

But with rising petrol costs and interest rates putting a strain on Kiwis’ back pockets, will consumers be in the mood to spend big this year?

Recent figures from job platform Zeil show Christmas casual vacancies are up 85% year on year.

It comes as Retail NZ encourages employees looking for seasonal work to get their CVs finalised and distributed to retailers now.

“Many retailers will need additional staff over Christmas so now is the time for both businesses and potential employees to get ready,” Retail NZ chief executive Carolyn Young said.

“The December quarter is the time where most retailers do their biggest trade, with many relying on a successful festive season to be able to make it through the slower months of the year.”

Young said having the right people on board early gives retailers time to train their seasonal teams properly.

“It’s important stores identify the number of staff they will need, the hours they can offer and how they will bring new team members up to speed, so they are best placed to make the most of the jobseeker interest,” she said.

However, data last week from Paymark revealed a weaker appetite for retail spending compared with last year.

Consumer spending processed through all core retail merchants in Paymark’s payments network in September reached $3.572 billion, down 1.3% on the same month last year.

It followed a weak month in August, when spending was down 1.8% compared with 2025.

“New Zealand is off to a slower start to the usual end-of-year surge as we approach the pre-Christmas shopping season,” Paymark’s chief sales officer Bruce Proffit said.

Proffit noted that spending through Paymark at fuel outlets in the week ending September 30 was 35% higher than the same period last year.

Additionally, the Official Cash Rate (OCR) has risen 50 basis points (bps) from 2.25% to 2.75% over the last three months.

Young said there will need to be a significant lift in consumer confidence to boost the sector heading into the crucial Christmas sales period.

“[Paymark’s] figures reinforce what retailers have been telling us: households remain cautious and there simply isn’t a lot of spare money available for discretionary spending,” she said.

“Rising fuel costs and interest rates are adding further pressure to household budgets.

“Unfortunately for many retailers, that means shoppers delaying or foregoing the discretionary purchases that businesses rely on.”