fbpx
HomeNEWSRetail NZ expects higher Christmas spending

Retail NZ expects higher Christmas spending

As Christmas steps closer every day, retailers are beginning to feel pressure from international marketplaces according to Retail NZ.

As Christmas steps closer every day, retailers are beginning to feel pressure from international marketplaces according to Retail NZ.

Retail NZ’s #shoplocal call out expressed the need to consumers to keep their shopping as national based as they can. But strong international prices and less tax are causing issues for smaller New Zealand retailers.

Although pressure is building on the home stretch to Christmas, Retail NZ are still expecting that consumers will spend a record $17.4 billion in the lead up to the big day.

Greg Harford, Retail NZ’s general manager for public affairs, says despite this expected increase in consumer spending, the outlook is not completely positive for national retailers.

“Across the sector, retailers face strong competition from each other domestically, as well as from global websites that have massive scale.”

Harford says spending is expected to increase in almost every sector.

“While spending will likely be up over the next couple of months, margins are under real pressure, economic uncertainty is likely to put pressure on consumer spending, and many retailers are struggling to hit their sales targets.  

“That said, retailers are hoping for a positive Christmas period.  Smaller retail businesses especially often rely on a strong Christmas to sustain their businesses through the year, so it’s really important for the sector that the season goes well.”

The $17.4 billion expected spend is a five percent increase on last year. 

Rate This Article: