Positive Consumer Spending Welcomed by Retailers

Positive Consumer Spending Welcomed by Retailers

Retail NZ, the trade association representing over two thirds of total retail spend in New Zealand, has welcomed news that consumer spending in New Zealand has increased over the June 2015 quarter, after the release of the latest Retail Trade Statistics.

“Retailers are reporting to us that they are feeling optimistic about their sales targets, and consumers are spending well,” Retail NZ's General Manager for Public Affairs Greg Harford said today. “The latest Retail Trade statistics confirm this, and are consistent with the general sentiment that we are hearing from retailers.

“The first three months of the year saw a slight increase in consumer spending, and this translated into a solid increase in the June quarter. Kiwis love to get out and shop, especially when the weather is good, and it seems that the delayed start to winter was positive for many retailers, offering a longer time to sell through stock which relies on warmer weather. In the quarter ended June, we saw a solid lift in sales in the hardware, building and garden supplies category, reflecting continued low interest rates and our nation’s ongoing love of housing.

“Non-store and commission-based retailing, which includes online retailers continued to grow during the quarter. Kiwis are increasingly wanting to shop online, and it’s great to see an increase in online spending at New Zealand stores,” Mr Harford said. “However, online retailers based in New Zealand continue to face inequitable tax laws which effectively mean that bit international firms like Amazon and Ali Baba don’t need to pay their fair share of tax.

“Generally, retailers saw the June quarter as encouraging and are feeling positive about business for the upcoming three months. 85 per cent of retailers are telling us that they expect to meet or exceed their sales targets in the next quarter, and we expect that this week’s movement in interest rates will help support further consumer spending.”

ends

© Scoop Media