1 July 2021.
More than two-thirds of Retail NZ members are expecting prices to rise over the next quarter on the back of increased costs, according to Retail NZ’s latest Retail Radar report.
“There are significant cost pressures on retailers at the moment, including increased costs of acquiring goods, big increases in freight rates, and increases in the costs of employing staff,” Greg Harford, Retail NZ’s Chief Executive said today. “In the latest Retail Radar survey, half of retailers report that prices have already gone up over the last three months, and 68 of retailers report that they expect additional prices rises over the next quarter, with an average price increase expectation of around 7.5 per cent. Of note is that a third of retailers have also said that they have reduced discounting levels, on the back of strong customer demand and supply shortages.
“Spending continued to be strong on average across New Zealand. The latest Retail NZ Sales Index suggests average retail spending per site in June was up 9.8 per cent compared to last year, but a quarter of firms did not hit their sales targets. We are continuing to see some firms perform well, and others perform poorly. Struggling firms are most likely to be those in central Auckland or Wellington who are suffering from reduced foot traffic, as well as those who rely on inbound tourists. Confidence levels remain broadly steady, with 74 per cent of retailers reporting that they are confident, or very confident that their business will survive the next 12 months.
You can view the report here.
For further information, please contact:
Chief Executive, Retail NZ
027 243 2842
For the latest Media Releases click here.