The retail sector shares have outperformed all other sectors on the stock exchanges in New Zealand over the three months period.

Retail sector stocks have risen between 15 per cent and 32 per cent, which is faster than all other sectors on the domestic stock exchange market. The benchmark NZX50 Index recorded an increase of 12 per cent during the period.

A children's clothing chain, Pumpkin Patch was the best performing recording an increase of 32 per cent in the period to the level of $1.17. The gain in the country's retail stocks came even as the sector faces grim outlook. Experts say that the retail sector shares benefitted from investors chasing yields on stock markets as low interest rates have made fixed term funds unattractive.

Surveys show that the customers in New Zealand are unlikely to increase spending around the coming holiday season. Most of the retailing players in the country are exposed to customers from Australia and for most retailers, Australia is the largest source of revenues. The Australian retail market also remains tough as the retail sales rose only 0.2 per cent in August, which is lower than 0.4 per cent expected by the economists.