Industry peak body Retail NZ has a wish list of measures which it hopes to see in today’s national budget, including controlling the cost of living, combatting retail crime and improving infrastructures.
But even if these measures are taken, Retail NZ CEO Carolyn Young said may not be enough to curb the outlook for retail across the country as industry sales growth remains relatively low according to new trade data from Stats NZ, which confirmed a 0.7 per cent lift in seasonally adjusted overall retail revenue in the March 2024 quarter compared to the previous quarter.
For fashion in particular, sales have swung from positive to negative growth in last five quarters, with sales in the sector up 3.6 per cent in the March 2024 quarter. It follows a 2.7 per cent fall in December 2023, a 4 per cent lift in September, a 6.7 per cent fall in June and a 3.5 per cent lift in March 2023.
The overall revenue lift in March 2024 comes off a low base, including a fall of 1.4 per cent in December, with Retail NZ adding this does not reflect the population increase or the busy international tourism season. Year-on-year, this is just 0.6 per cent up on the same quarter in 2023 and the volume of goods sold is down 2.4 per cent against the same period.
“There’s still a long way to go before we see any light at the end of the tunnel,” Young said. “Retailers are struggling with inflation and soaring costs, along with a lack of consumer confidence.
“Retail NZ members are telling us that they have been tightening their belts in anticipation of slow sales and uncertainty. We are hoping the upcoming Budget will help restore confidence to the marketplace and provide a pathway out of recession.”
Young hopes the promised tax cuts will lead to a lift in consumer confidence.
She is also calling for clear policies to support business. In particular, Retail NZ is looking for investment in police to combat the current wave of retail crime, which it claims would need to be supported by funding for mental health, education and social services, as well as the planned Youth Military Academies.
“Retail crime cannot be solved by police alone,” Young said. “It’s a much wider socio-economic challenge that must be addressed by a range of agencies.”
Retail NZ is also keen to see indications in the Budget that New Zealand’s aging infrastructure is being upgraded.
Young pointed out that the Cook Strait ferries are vital for the transport of goods throughout New Zealand.
“We really need to see a signal of funding and a timeline for renewing the current fleet to bolster business confidence in our supply lines.”
The New Zealand 2024 budget is expected to be released today at 2pm local time.