New Zealand’s retail sector continues to battle low consumer confidence

WELLINGTON, Aug. 5 (Xinhua) — New Zealand’s retail sector has continued to battle low consumer confidence, said a latest survey published on Monday.
Citing the latest spending data from Worldline, New Zealand’s leading payment solutions provider, Retail NZ said that retailers are struggling right now, although glimmers of improvements in the economy are on the horizon.
Monday’s data for July 2024 showed consumer spending with core retail merchants in its payments network was down 2.6 percent compared with July 2023.
This echoes Retail NZ’s recent quarterly survey which showed that 71 percent of members failed to meet sales targets last quarter and 42 percent of retailers are uncertain if they can survive the next 12 months.
Cashflow is critical and some retailers have indicated they don’t think they will have the cash to buy forward stock, putting their businesses at risk, Retail NZ Chief Executive Carolyn Young said, adding that the challenge for retailers is to survive until 2025, although the potential change in the official cash rate provides some hope.
Young said consumers are hoped to start feeling more confident, with a greater willingness to support local retail businesses, along with last week’s tax cuts. ■