New Zealand’s gross domestic product (GDP) has shrunk by 0.6 per cent in the last quarter as confidence flounders among consumers.
Retail NZ CEO, Greg Harford, said the news comes as no surprise to retailers who were experiencing a “significant downturn” well before today’s figures with the sector registering soft sales during “key periods” of growth.
Earlier this week, Briscoe Group posts record sales, but its CEO Rod Duke warned of volatile trading conditions ahead.
“The decline in GDP in the December quarter is representative of what the sector has been communicating since mid-last year,” said Harford.
“Many are doing it tough and require settings that bring down the influences of domestic inflation, support operations through the removal of undue regulatory costs and an economic environment that means Kiwis can shop with their local retailer.”
Retail NZ’s Retail Radar research records that while 63 per cent of retailers had expected to hit their sales targets for the quarter, only 34 per cent managed to achieve it.
“Half of all retailers are not expecting to meet sales targets in the current quarter, and 30 per cent are not confident their business will survive the next 12 months,” said Harford.
