April retail figures not surprising

April retail figures not surprising, winter will also be tough

A fall in retail sales across New Zealand in April was due to a slower than expected economic rebound, fragile consumer and business confidence, and uncertainty ahead of the Government’s watershed May Budget, claims one Auckland retail advocate.

“Statistics New Zealand’s latest retail figures are not surprising. Retail overall had a slow start to the year and winter retail figures won’t be much better. It’s lining up to be a bit of a winter of discontent for many consumers. However we’re anticipating a positive pick-up in the last quarter,” says Cameron Brewer, chief executive of the Newmarket Business Association.

“This winter is proving to be a difficult environment for the country’s retailers. The economic recovery has been slow, and we’re now seeing rising interest rates, inflation, and imminent ETS and extra GST costs.

“Consumer and business confidence is still very wobbly and in Auckland a lot of uncertainty remains as we head towards the biggest local government election in our history.

“Shoppers are keeping their hands in their pockets with their spending power eroding all over the place. Wages and salaries aren’t going up much to compensate because everyone knows there are not a lot of jobs out there. Good news however will come in October with across-the-board tax cuts, but we’ve got to get through this winter first. It’s a tough patch for retailers.

“We’re telling retailers just to be patient. We’re confident the skies will clear in the last quarter of the year with some good tax cuts, more certainty, and hopefully some strong corresponding growth in confidence.

“To use those immortal words: ‘it won’t happen over night, but it will happen,’” says Cameron Brewer.

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