The Cost of Fast Fashion: Retail NZ Calls for "Temu Tax" to Level the Playing Field

Retail NZ calls for a levy on offshore giants like Temu and Shein as New Zealand's apparel sector faces a "brutal" downturn and hundreds of store closures.

By: AXL Media

Published: Apr 15, 2026, 6:13 AM EDT

Source: RNZ Pacific

The "Brutal" Downturn in Apparel

ANZ Chief Economist Sharon Zollner described the current climate for clothing retail as exceptionally tough. Spending on apparel has lifted at only half the rate of total spending over the last decade and has plummeted from its 2022 peak.

The Children’s Clothing Crisis: Spending in children and babywear shops has regressed to 2016 levels.

The Second-Hand Surge: Until the last month, thrift stores were the only growth area in apparel, as consumers "watch their pennies" and treat clothing as a discretionary rather than necessary expense.

The Case for a Levy

Carolyn Young, CEO of Retail NZ, argues that local businesses are fighting an unfair battle. NZ retailers must comply with: