Postive Christmas Results for Retailers

16 February 2016

Postive Christmas Results for Retailers

Today’s Retail Trade Survey results show steady growth for retail businesses through October, November and December, up 4.4 per cent in actual terms on the same quarter of 2014. Core retail categories fared slightly better, up 5.2 per cent. Total actual sales for 2015 have fallen just short of $80 billion ($79.1 billion), which compares to $75.6 billion in 2014 (up 4.6 per cent).

“The latest figures show that ‘non-store and commission-based retailing’ (which includes online-only retailers) had another quarter of strong growth, up 31 per cent in actual terms on the same quarter of last year and hitting $408 million. The ‘electrical and electronic goods’, ‘hardware, building and garden supplies’ and ‘accommodation’ categories also had improved results,” said Greg Harford, General Manager Public Affairs at Retail NZ.

“The past three months have seen the continuation of low-interest rates and increased visitor numbers. These factors coinciding with the traditionally busy Christmas period and summer holidays has been positive for some retailers. Customers had more money in their pockets and it’s the season to enjoy it.

“Customers are getting bargains too. Our members are telling us that competition is as tough as ever with Christmas sales starting earlier and more frequent discounting across the board. Internet sales, particularly from offshore, also continue to squeeze domestic merchants. Purchases by New Zealanders from foreign websites are not reported in the Retail Trade Survey.

“The next three months are looking slightly less rosy, however the majority of our members expect to meet sales targets and retain staff levels. This is traditionally a slower time of year for retailers as we return to work and get back into normal spending routines.”

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