Walk around Auckland, Wellington or Christchurch, and you can still see plenty of bricks-and-mortar shops, cafés and bars, as well as local businesses. But the signs are creeping in.
Foot traffic is down in many retail zones, and the landlords are experiencing softer demand for retail space. One recent report noted that in‑store spending dropped about 2.5% year‑on‑year in some sectors, whilst online shopping keeps setting new records.
🤔 What's happening, exactly? Has technology advanced to the point where we no longer need to consume outside our homes?
We explore below which markets in New Zealand are affected by this digital takeover and whether the brick-and-mortar establishments will survive.
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The current climate of consumerism in New Zealand
Retail NZ says that total retail sales are falling against previous years, and that includes nearly every category: clothing, vehicles, fuel, you name it. Part of this is economic pressure-cost of living, inflation, perhaps less disposable income.
👉🏻 Another large part is the fact that, simply, consumers prefer the convenience of shopping online. Increasingly, people in NZ compare prices online and skip physical trips unless it's really necessary.
Yes, there's pretty solid proof that brick‑and‑mortar in a lot of categories is under pressure in New Zealand. But it’s not an apocalypse; some shops are adapting to this reality, niche stores remain, sometimes even thrive, and physical presence still has value—especially in hospitality, speciality retail, and experiences.
A prime example
New Zealand will always attract tourists, and with that comes foot traffic, but are the locals opting to stay home more often? Gambling has become a complex issue in the country when looking at the figures.
Kiwis have a love of a good game, the same as anyone else (with pokies being the main way to gamble in the country), and online casinos are becoming a case study in how digital alternatives can erode the appeal of physical venues.
New Zealand has several physical casinos (e.g. SkyCity, etc.), but over time, more Kiwis are gravitating toward popular New Zealand online casinos, like those found on third-party review sites such as casino.org/new-zealand/, but why?
- Online sites offer a huge variety of games (slots, table games, live dealers) all in one place. Land‑based casinos have limits.
- They offer bonuses, no‑deposit promotions, free spins, etc., which physical venues generally can’t compete with.
- Accessibility: You can gamble from home at any time, no travel needed, no dress code, etc. That convenience is a big draw.
Comparisons: NZ vs other parts of the world
New Zealand is not in a solitary state, as many countries are showing similar trends. Let's look below at the comparison of the markets of other countries.
United States / Canada / Europe
For years, e-commerce has steadily eroded traditional retail across these regions. More recently, store closures have accelerated-notably in shopping centres, department stores, and chains with substantial overhead.
At the same time, many retailers are testing omnichannel models: showroom formats, click-and-collect services, and using stores partly as distribution centres.
Physical presence is not disappearing outright but instead evolving. Globally, store opening numbers have also shown a decline in most segments, whilst growth increasingly happens online.
Asia (China, Southeast Asia)
In fact, some markets in this region skip the physical retail model entirely. The main mode of commerce comprises mobile commerce, super apps, rapid delivery services, and social commerce.
Physical retail, however, remains relevant in main metropolitan areas and luxury segments, as well as in contexts requiring retail experiences. Nevertheless, it increasingly works as a complement rather than the key channel.
Australia
Australia has much in common with New Zealand: similar rural-urban demographics, dispersion of population issues, and distances. Australians have also adopted online shopping in a big way, with the consequent slew of retail closures or downsizing, particularly in secondary or peripheral locations.
📈 New Zealand takes a middle position: not significantly behind developed nations with mature e-commerce infrastructure, yet not as bound by infrastructure limitations as many developing economies.
The country also encounters more difficulties compared to larger countries owing to high shipping and import costs. However, New Zealand shoppers have embraced digital convenience with ease, and many industries have modernised at a rapid pace.
What might the future look like in New Zealand?
Current trends indicate that more physical stores will close, especially in suburbs or smaller towns where footfall is already at a low level. Rental costs and landlord risk exposure continue to rise.
The surviving physical retailers would have to focus on those attributes that are difficult for online channels to replicate easily: great in-store experiences, personalised service, community involvement, offering food and beverages, events, immersive or niche retail concepts, and locally sourced products.
🛍️ There will be more hybrid operating models. Expect more click-and-collect services, shopfronts that are all about the customer experience whilst fulfilment is elsewhere, and a deeper integration of online and offline channels.
Eventually, physical places are in decline, but this is more a matter of transition than of collapse.
Traditional stores are losing ground in the face of online competition, changing consumer habits, cost pressures, and greater convenience offered by digital platforms-including those offering casino operations.
Physical presence maintains value intrinsically, and a number of enterprises will work their way through model adjustments rather than closing down altogether.
