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Scoop
2 days ago
- Business
- Scoop
Retail Confidence Rises Despite Economic Pressures
Retailers across New Zealand are showing renewed confidence in the face of ongoing economic challenges, according to the latest Retail Radar report from Retail NZ. The quarterly survey, covering April-June 2025, reveals that 69% of retailers are confident or very confident their business will survive the next 12 months — a notable increase from 57% in the same quarter last year. This aligns with the findings of the recent NZIER Quarterly Survey of Business Opinion for Q2 2025 that found retailers were more optimistic about the economic outlook than other sectors. Retailers were 13% more likely to expect better general economic conditions over the coming months than the general business population. The optimism recorded in Retail Radar comes despite 62% of retailers failing to meet their sales targets in the past quarter. However, expectations are improving, with 60% anticipating they will meet or exceed targets in the next three months — up from 49% in Q1 2025 (January-March) and 32% in the April-June period last year. 'Retailers are resilient,' says Retail NZ Chief Executive Carolyn Young. 'While the economic environment remains uncertain, the sector is showing signs of cautious optimism, supported by inflation at 2.7%, steady OCR at 3.25%, and a slight uptick in card transaction spend.' Recent StatsNZ data shows retail sales volumes rose 0.8% compared to the last quarter of 2024, though growth remains modest at 0.65% year-on-year, and still below 2023 levels. Retailers continue to grapple with a range of issues, including: cost of living pressures insurance lease and rent increases Freight costs 'In spite of the confidence expressed by Retail Radar respondents, we are continuing to see retailers across the country shutting their doors due to increased pressure on cost of living, lease and rates increases,' Ms Young says. Following a recent trial by Foodstuffs North Island and guidance from the Office of the Privacy Commissioner, Retail NZ also asked members if they were likely to use Facial Recognition Technology (FRT) to combat retail crime. Only a small number of larger retailers are considering adopting FRT. The main barriers raised by respondents about use of FRT include: High implementation and maintenance costs (69%) Potential public backlash (36%) Need for more evidence of effectiveness (32%). 'FRT may be a useful tool for some, but it's not a one-size-fits-all solution,' says Retail NZ Chief Executive Carolyn Young. 'We know that FRT has proven to be effective in identifying recidivous offenders in-store. However, it requires a considerable commitment to implement, train and maintain FRT in-store.'
Scoop
14-07-2025
- Business
- Scoop
Slow Trading Continues For Retailers
Retail card spending figures for June 2024 show that the retail sector is continuing to face challenges, Retail NZ Chief Executive Carolyn Young says. Stats NZ's Electronic Card Transactions for June shows an increase in 'total retail' spending of just 0.5% compared to May (seasonally adjusted monthly values). However, when compared with June 2024 – which is how retailers monitor their sales performance – sales are down 0.4%. 'While it's positive to see the improvement in sales compared to May, the year-on-year data tells a different story,' Ms Young says. Initial results from Retail NZ's quarterly Retail Radar survey of retailers shows that about 60% of respondents report they did not meet their sales targets for the April-June quarter. The full survey results will be released next week. 'The retail sector is continuing to battle strong headwinds, with low consumer confidence limiting sales. Consumers are continuing to be careful with their spending and we have yet to see the boost expected from lower interest rates,' Ms Young says.
Scoop
14-05-2025
- Business
- Scoop
Budget 2025 Must Deliver Consumer Confidence
Press Release – Retail NZ Retail NZs latest quarterly Retail Radar survey, covering January-March 2025, found that 57% of retailers did not meet sales targets for the quarter and had mixed expectations for quarter two sales. Retailers will be looking for next week's Budget announcements to boost consumer confidence and spending, Retail NZ says. Strong signals on economic recovery are on Retail NZ's wish list for the Budget announcements. The Electronic Card Transactions data for April 2025, released today by Stats NZ, shows a tiny increase in sales compared with April 2024, it is not enough to improve the outlook for retail, Retail NZ Advocacy Manager Ann-Marie Johnson says. The 0.8% lift reflects the Easter public holidays, which fell fully within April this year, and also within the April school holiday period. Easter spanned March and April in 2024. The figures also show that the value of the average transaction has not changed since April last year, with consumers spending $55 per transaction. 'There's still a long way to go before we see any light at the end of the tunnel. Retail NZ members are anticipating slow sales and uncertainty through this winter. Although there may be some relief from lower interest rates putting more money in consumers' pockets, low consumer confidence will continue to rein in spending. We are hoping the upcoming Budget will help restore confidence to the marketplace.' Retail NZ's latest quarterly Retail Radar survey, covering January-March 2025, found that 57% of retailers did not meet sales targets for the quarter and had mixed expectations for quarter two sales.
Scoop
14-05-2025
- Business
- Scoop
Budget 2025 Must Deliver Consumer Confidence
Retailers will be looking for next week's Budget announcements to boost consumer confidence and spending, Retail NZ says. Strong signals on economic recovery are on Retail NZ's wish list for the Budget announcements. The Electronic Card Transactions data for April 2025, released today by Stats NZ, shows a tiny increase in sales compared with April 2024, it is not enough to improve the outlook for retail, Retail NZ Advocacy Manager Ann-Marie Johnson says. The 0.8% lift reflects the Easter public holidays, which fell fully within April this year, and also within the April school holiday period. Easter spanned March and April in 2024. The figures also show that the value of the average transaction has not changed since April last year, with consumers spending $55 per transaction. 'There's still a long way to go before we see any light at the end of the tunnel. Retail NZ members are anticipating slow sales and uncertainty through this winter. Although there may be some relief from lower interest rates putting more money in consumers' pockets, low consumer confidence will continue to rein in spending. We are hoping the upcoming Budget will help restore confidence to the marketplace.' Retail NZ's latest quarterly Retail Radar survey, covering January-March 2025, found that 57% of retailers did not meet sales targets for the quarter and had mixed expectations for quarter two sales.
