Close
 

Data dump: Retailers expect good things from 2017

  • News
  • December 16, 2016
  • Sarah Dunn
Data dump: Retailers expect good things from 2017

Westpac senior economist Satish Ranchhod says it’s been a solid year for the retail sector so far, with spending volumes in the year to September up 5 percent. He expects this strength to be sustained through the holiday period and into 2017.

“Spending is being supported by a range of factors: employment has been rising; despite recent increases, interest rates remain low; and the population is growing at the fastest pace we’ve seen in decades,” Ranchhod says. “On top of this, the weakness in dairy prices that had dampened incomes and spending appetites in recent years (especially in rural regions) has now dissipated. Put all those domestic factors together with a strong tourist season, and the outlook for retail spending looks very solid.”

Financial services company MYOB says 47 percent of local retail and hospitality report that they’re busier than normal for this time of year. Over the last 12 months, 32 percent have seen an increase in revenue.

BNZ’s latest Marketview report for online retail spending backs this up, indicating total online retail spending in October outperformed the same month in 2016 by 14 percent. Sales at local sites were up 11 percent, but online retail sales at offshore websites were very strong, up 17 percent on last October.

This isn’t wholly borne out by electronic card transactions in November, however. According to Statistics NZ, retail transactions in October rose 0.6 percent, but fell 0.1 percent in November.

Regardless, what seems to be a strong current performance is spilling over into optimism for 2017, with 44 percent of SMEs in retail and hospitality reporting to MYOB that they expect the economy to improve over the next 12 months. Just under half of the respondents believe they will see further increases in revenue, ahead of the national average of 42 percent.

MYOB New Zealand head of SME Ingrid Cronin-Knight says the retail and hospitality sectors are in good shape and she’s hearing positive sentiment from business customers.

“These sectors continue to grow and have really established themselves as one of the leading lights in New Zealand’s economy. Optimism is crucial and there is confidence from within the sectors that the positive trends will continue well into the future.”

There are some pain points, however. Funding this increased business is a concern, with 30 percent of respondents reporting they were under extreme cash flow pressure. This is a significant rise from 21 percent in June.

Other major issues include attracting and retailing customers at 27 percent; tax compliance obligations and competitive activity equal at 26 percent.

“While many businesses are busier than usual, they are still concerned about cashflow. Many of them are operating with tight margins so people should get out this season and support our retailers, restaurants, cafés and bars,” Cronin-Knight says.

High consumer confidence should support this call to action. Nielsen’s Q3-2016 Consumer Confidence Index indicated an optimistic 101, with five points added over the three months prior.

Ranchhod does sound a warning about household debt, however. He says that relative to incomes, household debt is at record levels, and this could act as a brake on spending over the coming years. With much of this debt leveraged against housing assets, Ranchhod warns that any shock to the housing market could weigh on household spending.

​ ​

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.

 

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
 
 

Retailers gather for insights at NZ Retail and The Register's breakfast

  • News
  • March 21, 2019
  • The Register
Retailers gather for insights at NZ Retail and The Register's breakfast

NZ Retail and The Register’s sales and marketing breakfast saw dozens of Kiwi retailers come together to network, sharing tips and tricks and absorbing expert advice.

Read more
 
 

Who stole Christmas?

  • News
  • March 21, 2019
  • Kelly Withers
Who stole Christmas?

Results are starting to trickle in from Christmas 2018/2019, and for many retailers, they're a little disappointing. Paydar chief executive and co-founder Kelly Withers explores the data.

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 ...
 

Chinese businesspeople raise millions for Christchurch victims

  • News
  • March 21, 2019
  • Radio New Zealand
Chinese businesspeople raise millions for Christchurch victims

A group of visiting Chinese businesspeople have raised $2.35 million for victims of the Christchurch mass shooting.

Read more
 
 
News

The Retail NZ Awards: What does it take to be a winning retailer?

Take this time to shine with the upcoming Retail NZ awards, a chance to show the retail industry what makes your business stand out. No ...

 

Hunting & Fishing New Zealand voluntarily pulls military-style assault weapons from sale

  • News
  • March 20, 2019
  • Sarah Dunn
Hunting & Fishing New Zealand voluntarily pulls military-style assault weapons from sale

In the wake of the attack on Christchurch’s Muslim community on March 15, strong calls for changes to New Zealand’s gun last have been made. Trade Me was the first retailer to act, halting the sale of all semi-automatic weapons on its platform, and it has now been joined by Hunting & Fishing New Zealand.

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

}