Kiwis Adjust Holiday Spending Plans Amid Rising Costs

Nearly half of New Zealand shoppers are planning to tighten their wallets this holiday season as inflation and increased living costs reshape their spending habits. Research from the buy-now-pay-later provider Afterpay indicates that 46% of consumers intend to spend less during the traditional end-of-year retail period. The findings come at a time when economic pressures are increasingly influencing shopping behaviors.

According to Afterpay’s Festive Forecast and Festive Lookback reports, a significant 35% of respondents expressed concerns regarding their holiday expenses. Katrina Konstas, country manager for Afterpay Australia and New Zealand, commented on the shift in consumer behavior. “Cost-of-living pressures have made people much more strategic – shopping earlier, timing purchases around sales, and using flexible payment options to maintain control and budget effectively,” she stated. Despite these challenges, Konstas noted that New Zealand consumers remain committed to thoughtful gifting and self-care, reflecting the enduring festive spirit.

Shoppers Embrace Early Deals

The trend of early shopping is evident, with 64% of participants indicating they plan to complete most of their purchases between September and November, marking the earliest shopping behavior recorded by Afterpay. Over half of these respondents, 52%, cited their desire to spread costs over time as a reason for early shopping. Another 52% aimed to alleviate last-minute stress by planning ahead.

Discount hunting is becoming increasingly common, as 48% of Kiwis wait for sales before committing to significant purchases. This figure climbs to 58% when it comes to experiences such as travel or classes. In 2024, nearly 40% of Afterpay customers took advantage of Black Friday and Cyber Monday deals, with November 29 emerging as the most popular shopping day.

Shifting Priorities in Holiday Gifts

When it comes to gift preferences, 74% of respondents reported plans to buy self-care products, while 39% indicated an interest in wellness items. Clothing and shoes remain popular choices, with 51% of shoppers expressing interest, alongside 34% considering interior decor items and toys.

These insights from Afterpay align with recent data released by Stats NZ, which shows a decline in retail spending. In September 2025, Kiwis spent 0.5% less in the retail sectors compared to August, halting a three-month trend of increased expenditure. This drop equated to a decrease of $34 million, with core retail industries seeing a 0.4% drop, or $25 million.

Mary Jo Vergara, a senior economist at Kiwibank, explained the implications of this data. “Clearly the essential goods are taking up most of the budget. There’s been not a lot left over for more fun things, with spending focused on grocery goods and services,” she said. Vergara also noted that durable goods saw a decline of 0.9% compared to the previous year, while consumables increased by 3.6%, highlighting how households are prioritizing their budgets.

This evolving landscape of holiday spending in New Zealand underscores the impact of economic conditions on consumer behavior, with many Kiwis adapting to challenges while striving to maintain holiday traditions.