According to the latest Retail Radar survey from the trade association Retail NZ, 70 per cent of businesses expect to survive the year ahead, a five per cent improvement from the previous year.
Inflation and cost-of-living pressure (73 per cent) and insurance increases (53 per cent) were listed as the key concerns for retailers.
When detailing a ‘wish list’ for the year ahead, an improvement in consumer confidence (30 per cent), decreasing inflation (17 per cent), and merchant surcharge legislation (14 per cent) were identified as critical to successful trading.
Retail NZ CEO Carolyn Young said that addressing weakened consumer confidence was critical for the industry's future.
“While they wait for that upturn, retailers are doing what they can to tread water,” she said.
“Some retailers are buying less or different stock to meet consumers’ changing needs, while others are looking to enhance their digital platforms to generate more online sales and some business owners are working more unpaid hours.”
Young added: “However, some retailers are doing well. The key is remaining agile and ensuring their business meets the current market environment, as well as looking at how to reduce costs.”
During the third-quarter survey, just 5 per cent of retailers predicted they would exceed sales targets in the fourth quarter. The report noted that 17 per cent of retailers did so, overcoming this pessimistic forecasting.
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