It is being billed as New Zealand's largest furniture and homeware retailer but the opening of Nido this weekend seems like a hugely optimistic punt on an industry hit hard by the Covid-19
Nido enters the turmoil of the retail sector
There is no denying, however, that it is uncertain times for retail, in the wake of profit warnings from listed retail groups, closure or curtailment of operations and general disruption in the wake of government-enforced health restrictions.
Forsyth Barr retail analyst Guy Hooper classed the outlook for the sector as "opaque."
He said the full extent of lockdown policies remained unclear and consumer appetite for "bricks and mortar" shopping, even at less restrictive levels, was still uncertain.
He also said the deteriorating economic outlook might weigh on medium-term growth, as it had during the global financial crisis.
Enormous losses
A number of retailers have already signalled either closures or restructurings. Last week furniture and appliances retailer Smiths City confirmed it would sell its 29 stores and finance operations to Polar Capital for $60m, closing seven of its stores in the process.
South Island retailer H&J Smith, meanwhile, is set to close four of its stores through Otago and Southland as well as two of its other retail interests in Queenstown and Dunedin.
The Warehouse Group, the country's biggest retail group, recorded enormous losses across its Warehouse, Warehouse Stationery, Noel Leeming and Torpedo7 brands as a result of trading restrictions. It was one of the biggest recipients of government aid under its wage subsidy, receiving $67.7m under the government's employee subsidy scheme, without which it said it would have to relinquish staff.
The James Pascoe Group, the trans-Tasman owners of mid-market department store chain Farmers, Whitcoulls and Pascoes, also announced it would be trimming up to 160 staff. This was in spite of receiving a $23.2m subsidy for its 3,597 employees across its New Zealand interests.
Department store David Jones is also known to be having liquidity issues, with the firm not paying its staff until it had received a $1.2m wage subsidy for its 189 staff across its two New Zealand stores.
Despite their 'essential service' ranking, hardware brands have not fared much better. Placemakers will suffer staff losses as part of parent Fletcher Building's rolling layoffs of 1,500 frontline staff across Australia and New Zealand while Bunnings will close seven of its 50 stores and Mitre 10 is to close at least one store.
According to Stats NZ, the sector sacrificed more than $1 billion in sales in April, during the late March and April shutdowns.
Boost confidence
However, First Retail Group managing director Chris Wilkinson said new store openings would help boost retail confidence.
"People have been focused on their home environment for the past eight weeks, and we know that during the lockdown the businesses in these categories have done very well selling their essential items."
Despite the shock the sector had experienced, Wilkinson said the new Nico concept represented the "types of stores Kiwis head to once New Zealand came out of lockdown as many of them will have identified projects they want to get started."
"Kiwis are looking for shopping solutions that are brought together under one roof. Products have been carefully curated to focus on what New Zealand consumers like and want, they have a universal appeal but underpinning that is an answer to a Kiwi demand for products which have convenience and value."