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.


Gun retail will change after the Christchurch shooting

  • Opinion
  • March 18, 2019
  • Sarah Dunn
Gun retail will change after the Christchurch shooting

In the wake of an appalling attack, public sentiment around guns sales has changed. NZ Retail and The Register editor and associate publisher Sarah Dunn considers how gun retailers can work with the community in this new environment.

Read more
Sponsored content

Protect against porch pirates: The Courier Box

Necessity is the mother of innovation, and this is certainly the case for The Courier Box designer and developer Joanna Steel.


How did that happen: Customisable Products

  • News
  • March 14, 2019
  • Courtney Devereux
How did that happen: Customisable Products

According to the Forbes 2018 trend report consumers are increasingly searching for personalization of products, services, and experiences. From wallets, phone cases, apparel, pet accessories, plates, bedding, and even number plates, if it can be purchased, it can be monogrammed, personalized, and used as a display of our individualism.

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.

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 ...
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 ...

Here we go again

  • Opinion
  • March 14, 2019
  • Satish Ranchhod
Here we go again

After losing some steam over 2018, another year of moderate growth in retail spending is on the cards for 2019.

Read more

Kathmandu security breach may have captured customer data

  • News
  • March 14, 2019
  • Radio New Zealand
Kathmandu security breach may have captured customer data

Outdoor clothing and equipment retailer Kathmandu is investigating a suspected customer data breach on its trading websites.

Read more

Briscoe Group notches another record annual result

  • News
  • March 14, 2019
  • Radio New Zealand
Briscoe Group notches another record annual result

Briscoe Group has reported a record full year profit after a surge of sales going into the Chirstmas shopping season.

Read more
Next page
Results for
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.

The Register

Content marketing/advertising? Email or call 022 639 3004

View Media Kit