The country’s largest retailer The Warehouse Group has seen its annual profit tumble by 65.6 per cent. Its CEO explains how it’s managing increased costs and crime.
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“There are definitely a number of stores that have got their Boxing Day sales up already, you’ll see big signs with 40 per cent or 50 per cent off,” she said.
“They’re trying to entice people into the stores with big sale figures out now.”
Young said business owners who relied on the Christmas rush to stay afloat are worried.
“It’s going to mean that more and more pressure comes on businesses around how they survive through next year,” she said.
“A number of small businesses have spoken to us about [how] their ability to trade next year will be dependent on how good their sales are in the Christmas period and Boxing Day.”
She said retailers hoped the cost-of-living crisis could be brought under control next year.
Young said it had been a slow summer for stores around the country.
“Normally you see a build day on day, week on week ... we’re not seeing that build that we’ve seen in the past,” she said.
“There’s still some quiet days, you might have one or two quiet days and then it’ll be really busy, and then it’ll be quiet again.”
Some stores are starting their Boxing Day sales early as they try to make up for a slow Christmas shopping season. Photo / Brett Phibbs
Shoppers explained why.
“People are watching their dollars,” one in central Christchurch said.
“We cut it back to only doing Secret Santa, it gets a bit silly buying for everybody,” said a second.
Others said they were spending less time in stores and more time online.
"We are seeing things like Black Friday and November start to impact the amount of spend in December”, says Bruce Proffit. Photo / Alex Burton
Some sectors were hurting more than others. Eftpos network operator Worldline said consumers were favouring daily needs and recreation over Christmas gifts and other luxuries.
“We’ve seen food and liquor be significantly higher, about 7 per cent up ... and recreational goods are up which is positive given they’ve been down for the past quarter or so,” said chief sales officer Bruce Proffit.
“But surprisingly clothing and footwear, where there’s a lot of gifts going into Christmas, is down almost 9 per cent so that was a bit of a shock.”
He said the allure of Christmas shopping wasn’t quite as strong as it used to be.
“It’s still the most important time of year for retailers in terms of spend, but we are seeing things like Black Friday and November start to impact the amount of spend in December,” he said.
Massey University Professor of Marketing Bodo Lang said shoppers would see bigger discounts as retailers worked to attract customers.
