Retailers in New Zealand are feeling less optimistic ahead of winter after missing their sales targets during the summer trading season, Retail NZ’s latest Retail Radar quarterly survey shows.

The survey, which covered this year’s first quarter, found that 64 per cent of respondents did not meet sales targets for the period.

“The post-election optimism recorded in the Retail Radar survey at the end of 2023 has dissipated as retailers struggle with inflation and soaring costs,” said Retail NZ chief executive Carolyn Young. “Skyrocketing insurance costs and a lack of consumer confidence are impacting heavily on profitability.”

More than half of the respondents (55 per cent) do not expect to meet targets in the upcoming April-June quarter as the situation does not seem to improve. Almost a third of businesses (32 per cent) are unsure whether they will survive the next 12 months.

The level of pessimism is even higher than the year-ago period, when 28 per cent of businesses were not feeling confident about their survivability, added Young.

Inflation remains the most significant issue (62 per cent) for retailers, followed by insurance cost increases (55 per cent) and wage increases (52 per cent).

“As we enter the traditionally slower winter months, retailers will be tightening their belts in anticipation of slow sales and uncertainty. Retail NZ is hoping the upcoming budget will help restore confidence to the marketplace and provide a pathway out of recession,” Young concluded.

• Further reading: Apparel leads 3 per cent March retail sales fall