Costs And Inflation Increasing At Rapid Rate, Retailer Confidence Continues To Slump

The latest Retail NZ Retail Radar report of the retail sector shows that the widespread emergence of Omicron in the community has seen retailers miss targets, dissatisfaction with the Government’s response to COVID-19 remains steady and 90 per cent of retailers expect prices to rise by 7.5 per cent on average over the next three months.

“As expected the Omicron outbreak and impact of the Red Alert Level Setting has had widespread impacts on the retail sector – in particular central city retailers, and has seen low foot traffic across the country” says Retail NZ Chief Executive Greg Harford.

“The Retail Radar Survey shows that 75 per cent of retailers did not meet their targets in the past three months. Furthermore, 61 per cent are not expecting to reach targets for the next quarter reflecting the overall impacts of the current operating environment”

“Recent surveys showing record low consumer confidence are not helping retailers' outlook either, with 35 per cent of retailers saying they are not confident they will survive the next 12 months, and dissatisfaction with the Government’s handling of COVID-019 increasing to 65 per cent – a 6 per cent increase on the previous quarter.”

"The Inflationary outlook remains strong, with 90 per cent of retailers saying they expect prices will increase over the next quarter. The average price increase expectation is 7.5 per cent, suggesting that pricing will be a significant issue as the year progresses.

“The sector needs support to rebuild and recover after the past two years of COVID-19.. We need a clear signal from the Government to New Zealanders that it is safe to reengage with communities, businesses and workplaces. We must move forward, and are calling on the Government to speed up the review of Alert Levels. If Cabinet is making the decision on Monday – the Government should just tell us then so businesses can have certainty and kiwis can get back out into their communities sooner.”

You can find the latest Retail Radar report here.

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