Close
 

New Zealand’s endless summer hurts retail sales

  • News
  • May 4, 2016
  • Elly Strang
New Zealand’s endless summer hurts retail sales

The idea of a never-ending summer is a blessing to most, but to retailers, it’s more of a curse.

Weather that diverges from the usual patterns can make it harder to sell seasonal stock and according to the National Institute of Water and Atmospheric Research, New Zealand just experienced the sixth-warmest April on record.

Clothing company Hallenstein Glasson reported a 21 percent profit drop in its first-half results in March this year, with CEO Graeme Popplewell saying an unusually warm Autumn had impacted on sales.

He said the unexpected temperatures on top of an already tough operating environment had contributed to its decreased sales.

“The record temperatures in both New Zealand and Australia have not been conductive to early autumn sales and the retail environment in fashion apparel remains challenging,” he said.

A similar problem was reported last year by Kathmandu last year when it posted a $1.8 million first-half loss.

First Retail managing director Chris Wilkinson says this problem is cropping up again across the country.

“Over the last month we’ve travelled through all the main centres and working with a lot of big mall owners and a lot of the retailers and there is a lot of stock sitting out there across the country,” he says.

A lot of what’s not selling is big-ticket items like coats and long boots, he says, so retailers are hanging out for a “deep dive” into winter.

As a result, he says there may be a few more sales happening to encourage consumers to open their wallets.

However, retailers who have more trans-seasonal products on offer may be benefiting from the warm weather.

“The flipside for likes of Kathmandu is people could be continuing these outdoor activities for a bit longer like camping, so they could be more resilient than other categories,” Wilkinson says.

One way around this weather problem that keeps popping up is encouraging Kiwi shoppers to get more into layering.

Clothing that can be layered on top of one another, like cardigans, tops and coats, can often switch between seasons and be dressed up or down.

Wilkinson says this could help lessen the impact of when seasonal-specific stock doesn’t sell.

“New Zealand isn’t very good at layering, but in Europe they are and that gets around this need to constantly have a summer and winter wardrobe,” he says.

Another solution is GIS weather mapping and future forecasting.

Technology like Esri is being used worldwide by retailers to track population growth when choosing a new store location or predict long-term weather patterns for stock.

IBM Watson has also delved into retail data by predicting what products will sell out in stores.  

Wilkinson says while once upon time this kind of data was an imprecise science, it’s getting increasingly more accurate.

“We’re going to start to see people in New Zealand using mapping strategies for long-term analysis to work out what their ranges need to be and you might start to see Dunedin stores having different range allocations to that of Auckland,” he says.

Meanwhile, MetService meteorologist Lisa Murray says the warm weather will continue into May, with unusually high Autumn temperatures felt across the country.

​ ​

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.

 

Restaurant Brands turns 22

  • News
  • March 26, 2019
  • Sarah Dunn
Restaurant Brands turns 22

As it prepares to celebrate its 22nd birthday, the listed corporate franchisor foresees a sunny future for the three – soon to be four - multi-site branded food retail chains it manages in New Zealand.

Read more
 
 

Linwood businesses struggle in mosque attack aftermath

  • News
  • March 26, 2019
  • Radio New Zealand
Linwood businesses struggle in mosque attack aftermath

A group of Christchurch businesses are struggling to get back on their feet after the attack on their neighbouring Linwood Mosque. Photo: RNZ / Katie Todd

Read more
 
 

Farmers account awarded to Clemenger Group

  • News
  • March 26, 2019
  • StopPress Team
Farmers account awarded to Clemenger Group

99 and Colenso BBDO have won the creative and customer experience business for Farmers. The win, after a competitive pitch, sees the advertising account return to 99 after a six-year hiatus.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
Concept to closet
Business coverage of New Zealand Fashion Week.
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
The future is bright
We spoke with four retailers in their twenties ...
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 ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
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 ...
Sisterhood
Women in retail help one another. We spoke ...
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 ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
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 ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 

Hemp products go beyond the specialty shelves

  • News
  • March 25, 2019
  • Sarah Dunn
Hemp products go beyond the specialty shelves

Since hemp seeds’ legalisation for growing, manufacture and sale in November 2018, supermarkets have quickly pivoted to include hemp products such as protein powder in their health food and specialty sections, but the trendy ingredient has already found its way into mainstream product categories.

Read more
 
 

No longer just for hippies: Is hemp the next coconut oil?

  • News
  • March 25, 2019
  • Sarah Dunn
No longer just for hippies: Is hemp the next coconut oil?

The Naturally Good Expo, held over June 2 – 3 in Sydney, will bring retailers, brands and practitioners together to learn about all things healthy, organic and natural. Among the topics discussed by industry leaders at the expo is the recent legalisation of hemp – it’s popping up everywhere. We asked John Leith of supplier Hemp Oz and speaker Susan Tapper of Holistic Marketing Healthy Sales for more information about this exciting new product category.

Read more
 

Military-style semi-automatics ban announced

  • News
  • March 21, 2019
  • The Register team
Military-style semi-automatics ban announced

As of 3pm on March 21, a wide range of semi-automatic weapons have been reclassified under section 74A(c) of the Arms Act as requiring an E endorsement on a firearms license. This means they can no longer be sold to those with A-category gun licenses, and their purchase now requires police approval.

Read more
 
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.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}