HomeNEWSData digest: the state of NZ’s retail industry

Data digest: the state of NZ’s retail industry

The Retail Trade Survey results from earlier this year show sales of $18.9 billion for the second quarter of the year (a 0.1 percent increase from the year previous).

Retailers have reported that business has been steady but not excellent.

Out of those surveyed, 37 percent met their targets, 21 percent exceeded their targets and 42 percent didn’t meet their targets.

Some retailers said this was due to the cold weather keeping shoppers at home, while others said it was due to dairy prices dropping.

Others said the exchange rate was impacting their ability to meet targets.

Competition from overseas online retailers is also considered to be significantly impacting on sales, particularly when it comes to recreational goods and clothing and footwear.

However, some events did bolster sales in a positive way. School holidays, Mothers Day and the Under 20 World Cup event all contributed to sales.

The outlook for the next three months is improved – two thirds (67 percent) of retailers think they will meet their targets.

Just 12 percent think they’ll exceed their targets and 21 percent think they won’t meet them.

Most employers (57 percent) think they’ll keep the same number of staff over the next three months. A fifth think they’ll hire more.

Many retailers still have their concerns about economic uncertainty in the coming months and expect the dairy prices and exchange rate to have an effect.

They said they were putting their faith in good old-fashioned customer service to lift results and would put effort into marketing and staff training.

Retailers are also looking to get organised for early Christmas shoppers, which will no doubt provide a good boost to sales.

There are also other events approaching they’re in good spirits about – Father’s Day and local events like the World of Wearable Arts in Wellington.

Download the full Retail Radar report here.

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