Retailer confidence remained positive in July, building on the strong rebound recorded in June after lockdown was
lifted. 75 per cent of retailers responding to a new Retail Radar survey reported feeling confident or very confident
that their business will survive the next 12 months, up significantly from just 39 per cent in May, but 13 per cent are
expecting to make employees redundant when the Wage Subsidy ends.
“Sales across the sector were strong in July, up substantially on the previous year, although overall retail sales are
down 9.6 per cent since March, and the recovery appears to be slowing,” Retail NZ Chief Executive Greg Harford said
today. “There are real clouds on the horizon in the short-term, and the good news is not spread equally across the
sector, with a significant number of retailers whose businesses continue to be substantially negatively impacted by
COVID-19. Although sales are up across the sector on average, 22 per cent of retailers are reporting that their sales
fell during July.
“Our survey showed that 13 per cent of retailers expect to make staff redundant when the government wage support ends,
and another 13 per cent have seen a significant decrease in foot traffic, with less than half the number of people
usually seen shopping. Retailers that are heavily reliant on the international travel market are particularly severely
impacted and will be for the foreseeable future.”
“While the recovery from COVID-19 is underway these remain unprecedented times and many challenges remain for retailers.
Consumers will be very cautious about spending in the coming months, with the uncertainty an election period brings, but
especially as financial assistance such as the wage subsidy and mortgage holidays end. It is essential to the whole
economy that spending continues to grow, and further assistance from government to stimulate the economy, such as tax or
GST cuts, is strongly supported by retailers.”
A copy of the latest Retail Radar report is attached.