Retail sales in New Zealand unexpectedly dropped 0.5% quarter-on-quarter in Q2 2026, reversing an upwardly revised 1.0% growth in the previous quarter and defying market expectations of a 0.1% rise. It was the first quarterly decline in retail sales since Q3 2024, with the figures adjusted for inflation and seasonal effects. The decline was broad-based, with eight of the 15 retail industries recording lower sales volumes, with notable declines in fuel (-13%), motor vehicles and parts (-2.3%), accommodation (-8.0%), and food and beverage services (-2.8%).