One in three New Zealand retailers unsure they can survive

Inflationary pressures, rising operating and freight costs coupled with ballooning retail crime continue to test business survival, says Retail NZ.

The retail body’s latest Retail Radar report revealed that half of all retailers surveyed are “not expecting” to meet targets again in the third quarter of this year. Some 59 per cent of them did not meet targets during the past three months – a “substantial increase” when compared to the 44 per cent recorded in the previous quarter, according to Retail NZ chief Greg Harford.

Worse, about 36 per cent of retailers say they are not confident or not sure if they will survive the next 12 months.

Harford said domestic inflation is resulting in increased costs across the board, however there are signs that price inflation might be slowing with the average price increase sitting at 4.3 per cent, down from 5.4 per cent last quarter.

Sixty per cent of retailers report they have increased prices during the past three months.

“Over the past few months, we have seen a significant number of retail businesses take the decision to close their doors, and these latest numbers show that many businesses are on a knife edge,” said Harford.

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