Retailers remain cautious about a pick-up in household spending despite signs that sales are improving.
June quarter retail sales figures show spending - excluding fuel and vehicles - rose at its fastest pace in two years.
Sales by value in 12 of the 15 retail groups monitored by Statistics New Zealand rose in the three months to June, suggesting a broadening in the retail recovery.
Sales volumes rose 1%, equal to the March quarter increase - the biggest quarterly rise since September 2009.
The Retailers Association's John Albertson says the numbers are heading in the right direction for his members and will get a further boost from the Rugby World Cup which begins on 9 September.
However, he says margins remain under pressure and retailers are not yet confident enough in future demand to boost stocks significantly.
Mr Albertson says heavy discounting means prices for half of all retail categories are down on a year ago.
