Close
 

More than half of retailers aren’t meeting their sales targets

  • News
  • August 16, 2017
  • Sarah Dunn
More than half of retailers aren’t meeting their sales targets
Images: Retail NZ

The quarter to June 30th has been a disappointing one for the 51 percent of retailers, according to Retail NZ’s latest Retail Radar Report. More than half of the respondents failed to meet their sales targets, citing aggressive competition and constant discounting; competition from foreign websites; and consumer uncertainty caused by the upcoming election.

New Zealand’s total retail sales for the quarter were up 6.7 percent at $21.3 billion. The total North Island accounted for $16.3 billion of this, with Auckland alone covering $8 billion, and the South Island earning $5 billion in total.

Spending on hospitality, entertainment and food was driven by North Island events like the Lions tour in July; the World Masters’ Games in April, the Adele concert in March and Fieldays in June, says Retail NZ’s general manager for public affairs Greg Harford.

This supported stronger performance in the North Island than the South, with the central North Island (excluding Auckland, Waikato and Wellington) with the strongest growth of all. This area was up $353 million on the same quarter of 2016, or around 9 percent, taking its total to $4.3 billion. By comparison, Canterbury saw just 2.6 percent growth.

Harford says strong growth of around 15 percent was recorded in accommodation, liquor and motor vehicle segments of retail, but the retail industry as a whole has not flourished. The worst-performing categories were supermarket and grocery stores; non-store and commission-based retailing, and department stores.

"While retail trade spending has been steady, with Statistics NZ reporting a 1.6 per cent increase in seasonally adjusted terms, some parts of the retail sector are under signficant pressure," Harford says.

He reiterated Retail NZ’s long-held stance that companies selling into New Zealand should have to pay tax.

"Retailers continue to face strong competition, both domestically and from foreign websites who don't have to pay their share of tax,” Harford says. “This is keeping prices down, but is creating unsustainable pressure on businesses in the long-term, particularly SMEs that may lack scale. Many retail businesses are looking to develop a more experiential offering and to connect with consumers in an attempt to retain business in a highly competitive market."

Retail NZ’s Retail Radar Report indicates a negative outlook for the next quarter, with just 55 percent of retailers expecting to meet their sales targets. Nearly 30 percent expect to miss their targets.

While the general election traditionally slows economic activity, and offshore competition is unlikely to let up, some retailers are anticipating an increase in shoppers as the weather improves and daylight hours lengthen. There’s also hope in sight from new season products, and those in rural areas notes that improving dairy prices mean farmers have more money in their pockets.

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 
 
 
 
 

Sneak a peek inside the February/March issue of NZ Retail magazine

  • News
  • February 23, 2018
  • The Register team
Sneak a peek inside the February/March issue of NZ Retail magazine

The latest issue of The Register's print magazine, NZ Retail, is winging its way to subscribers right now. This time, we focus on how poor waste minimisation is sending retailers slip-sliding away from consumers' good books; how to make Amazon work for you; new developments to watch across New Zealand; and retail's top five fastest-growing categories.

Read more
 
topics
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
The future is bright
We spoke with four retailers in their twenties ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
Sisterhood
Women in retail help one another. We spoke ...
All things to all people
Kiwi retailers share their omnichannel strategies.
How to open a store
Sarah Dunn considers what it would take to ...
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 
 
 

Bambi Boutique: The launch that influence built

  • News
  • February 22, 2018
Bambi Boutique: The launch that influence built

Bambi Boutique is the latest venture by Auckland business tycoon, Iyia Liu, proving time and time again that influencer marketing is the key to quick growth. The Bambi Boutique launch went off without a hitch, while Liu’s influence saw the launch almost completely subsidised by the vendors involved.

Read more
 
Technology

Looking at retail inside and out: Simon Pound talks Vend, ventures and diversification

Simon Pound worked with retail tech company Vend for more than four years before shifting to become a partner at ventures start-up Previously Unavailable in ...

 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita@tangiblemedia.co.nz or call 022 639 3004

View Media Kit

}