Nearly half of Kiwi shoppers plan to spend less this holiday season, according to new research from buy-now-pay-later provider Afterpay, as the cost of living affects the traditional end-of-year retail spending period.

Afterpay’s Festive Forecast and Festive Lookback reports highlight how economic conditions are changing shopping behaviours, with 46% of shoppers planning to spend less, while one in three (35%) admit feeling pressure about holiday expenses.

Afterpay Australia and New Zealand country manager Katrina Konstas said Kiwis were becoming savvier this season.

“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,” Konstas said.

“Despite the challenges, New Zealand consumers still want to give thoughtful gifts and prioritise self-care, which shows the resilience of the festive spirit.”

Kiwis are shopping earlier, with 64% of respondents planning to complete most of their buying between September and November – the earliest shopping behaviour shown in Afterpay’s records.

Just over half of respondents (52%) said this was because they wanted to spread the costs over time, while 52% said it was to avoid last-minute stress by planning ahead.

Discount and sale hunting is more prevalent, with 48% of Kiwis waiting for discounts before committing to big-ticket purchases. This figure rises to 58% when buying experiences such as travel or passion classes.

Nearly 40% of Afterpay customers in 2024 capitalised on Black Friday and Cyber Monday deals, with November 29 emerging as the most popular shopping day.

As for what Kiwis want this holiday season, 74% of respondents said they plan to buy self-care products, with 39% looking to purchase wellness items.

Clothing and shoes remain popular (51%), with interior decor items (34%) and toys (34%) also popular.

Afterpay’s findings come after Stats NZ’s latest electronic card data, which showed Kiwis spent less in the retail industries in September compared with August. It stopped a three-month trend of increased spending.

Spending in the retail industries fell by 0.5% ($34 million) in September 2025 compared with the month before, while spending in the core retail industries decreased by 0.4% ($25m).

The total value of electronic card spending, including the two non-retail categories (services and other non-retail), shrank from August 2025 by 0.4% or $34m.

Kiwibank senior economist Mary Jo Vergara said the data was emblematic of a cautious consumer.

“Clearly the essential goods are taking up most of the budget. There’s been not a lot left over before more fun things, with spending just on grocery goods and services,” Vergara said.

“Looking at the September quarter data compared to last year, durables are down 0.9% compared to last year, while consumables were up 3.6%. So you can see how households are splitting their budgets.”

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.