Retail sales in New Zealand took a sharp dive in the first three months of this year, as consumers cut spending amid a deep recession and rising unemployment.
Statistics New Zealand says seasonally adjusted retail sales volumes fell a record 2.9% in the March quarter, marking the sixth consecutive quarterly fall in retail sales.
Motor vehicle retailing, which includes car and fuel sales, fell the most - down 11.4% for the quarter.
Motor Industry Association chief executive Perry Kerr says the downturn has hit the car sales market hard, with some car dealers having to close as a result. He says the figures are the worst since 1975.
Sales volumes, which exclude car sales, fell a record 1.2% - double previous records.
Supermarket and grocery sales rose 1.9%, but department store sales fell by 3.6%.
Wellington store Kirkcaldie and Stains says its profits have fallen 40% in the six months to February.
General manager John Milford says retailers are working hard to make money, with pre-season sales a clear indication they are trying to turn inventory into cash.
However, a senior economist at UBS believes the worst may be over as low interest rates and tax cuts bolster confidence, but expects spending to be subdued.
Robin Clements says he expects the Reserve Bank to continue cutting the key interest rate from its current level of 2.5%.
