Retail NZ latest report has shown that although retailer confidence has been down this year, our economy remains steady and has continued to out perform Australia.
According to Retail NZ, there are around 35,367 premises in New Zealand, making up for 10 percent of New Zealand jobs. Our retail sector makes up a large part of our economy, and as Greg Harford for Retail NZ says, “it can often seem pretty gloomy out there for Kiwi businesses which have flat or declining sales.”
“However, on average since 2013, New Zealand's retail sales have grown at a faster rate than Australia's, and on a state by state basis, we have outperformed every Australian state and territory except New South Wales. This reflects the relative strength of the New Zealand economy, and the challenges that have faced Australia over that time,” he said.
According to the survey, total retail sales have increased by 132 percent since 2000, with the most growth being seen from non-store and commission-based retailing (335 percent) and specialised food (188 percent).
In terms of international comparisons, our year of year growth has been stable. And with the acceptation of New South Wales, New Zealand retail sector has outperformed Australia’s in terms of percentage.
"Overall the New Zealand retail sector is well positioned for the future, but it is important that the sector continues to evolve to meet changing customer demand,” says Harford. “Over the next 10 years, we will see a move to larger stores, but also a strong niche small retail environment; a continued move to digital channels; and a move towards vertical integration. Competitive pressure will mean that retailers need to innovate and be highly responsive to customer demand."