New Zealand retailers are reportedly confident about their prospects for the remainder of the year despite prevailing adverse economic conditions.
According to Retail NZ’s latest quarterly survey, 71 per cent of respondents expressed confidence in their business’s survival over the next 12 months.
Around 12 per cent of retailers stated that they are either ‘not confident’ or ‘not at all confident’ about the survival of their business over the next year.
The findings of this survey come after several brazen thefts targeting jewellery stores in New Zealand made national headlines.
Retail NZ published its ‘Crime Position Statement‘ in October, outlining an estimated loss of $NZ2.5 billion for retailers each year due to criminal activity.
CEO Carolyn Young said despite economic headwinds and a challenging trading environment, the outlook appears optimistic for retailers.
“The change in Government has been the significant factor in improving confidence for the retail sector,” Young said.
“Although the economic outlook is for very strong headwinds for the next 12 months, retailers are expecting to see greater support from the new Government.”
The survey found that inflation remains the most pressing issue for retailers, with 57 per cent expressing concern, followed by wage increases (43 per cent) and freight costs (37 per cent).
“Inflation is the key driver for price increases, with retailers advising that prices were impacted by increases in costs by suppliers, freight costs and wage increases,” Young added.
The survey concluded on 31 December and encompassed vital sales periods, including the Labour Weekend, Black Friday sales, and Christmas events.
More reading
Crime spree: Concerns raised about security for jewellery retailers
Economic pressure: Michael Hill announces store closures, job cuts
Industry advocates join forces to fight retail crime
Aussie retailers express concern about future prospects
New Zealand: Crime costing retailers billions each year
Retail nightmare: New Zealand jewellers under siege
