A total of $25.2 billion was spent on retail sales in the previous quarter. Photo / 123RF
A total of $25.2 billion was spent on retail sales in the previous quarter. Photo / 123RF
Retailers were overall upbeat in the fourth quarter of last year, largely on the back of improved trading.
The latest Retail Radar report shows retailers fared better in fourth quarter trading with 61 per cent of retailers meeting or exceeding their sales targets, up from 43 per cent in theprevious quarter.
Christmas trading was strong for many retailers, with just under half - 43 per cent - reporting that business was better than the previous year.
A total of $25.2 billion was spent in retail sales in the fourth quarter, up 6.3 per cent from $1.5 billion a year earlier.
Auckland spent $9.2b in the quarter - up 4.3 per cent from the same period earlier, Canterbury $3.3b and Wellington a total of $2.4b.
The Manawatu/Whanganui region spent $1.1b in the last quarter.
Retail NZ general manager of public affairs Greg Harford said the report findings were positive for the sector as a whole.
Graphic / NZ Herald
While overall retail data was positive for the fourth quarter, the report found that 30 per cent of retailers struggled to meet their sales targets, particularly retailers of sport and camping goods, clothing and footwear and newspapers and books.
The report found competition from offshore websites was hindering trade opportunities for retailers of these categories.
Amazon's local launch in Australia did not impact retail sales, although Amazon's global site continues to pose a significant threat, the report states.
"Kiwis have been shopping on Amazon for a number of years, and the launch of the Amazon Australia site doesn't change the fact that Amazon already poses a substantial threat to New Zealand retailers," Harford said.
"The big issue for retailers continues to be that Amazon and other foreign competitors continue to enjoy preferential tax treatment by the New Zealand Government, which allows them to sell to New Zealanders without paying their share of GST and, in some cases, duty as well."
Graphic / NZ Herald
Harford said it was unsustainable for retailers to continue to be unfairly penalised.
A change in Government brought about mixed reaction from retailers, with many nervous about the likely financial and compliance costs associated with new regulations. Shoppers were found to be upbeat following the election result, with many citing increased optimism.
Unusually consistent good weather throughout the country in November and December also benefited retailers, with more people out and about.
More than 75 per cent of retailers were found to be positive about the current quarter. The report cited "consumer confidence and a willingness to spend" as creating optimism for retailers in this quarter.
Retailers are, however, nervous about the impact of increases to the minimum wage and other government policy such as increased paid parental leave.
Sixty-six per cent of retailers are anticipating employing the same amount of staff in the current quarter as they did during the same period a year earlier.
