Rising costs continue to worry New Zealand retailers

(Source: Bigstock)

Rising operating costs, staff shortages at a time of stagnant foot traffic are growing concerns for New Zealand retailers.

According to Retail NZ’s Quarter 2 Retail Radar report, retailers have experienced a rise in costs of around 6 per cent due to inflation, with a similar forecast for the third quarter.

Retail NZ chief, Greg Harford, said inflation will have a significant impact and consumers should expect further price increases on products.

“For many retailers, the reality is they are not able to absorb these new costs, instead passing them on to the consumer through price increases.”

About 71 per cent of retailers increased their prices by six per cent in the last quarter with 81 per cent likely to increase prices in the next quarter. Just over half the retailers hit their targets for the quarter while 46 per cent of retailers met or exceeded them.

As high inflation is expected to continue through, Harford says 32 per cent of business owners are not confident they will survive the economic pressure.

“Retailers are looking for certainty of foot traffic and stability in the economic environment,” said Harford.

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