Retailers across New Zealand are feeling more optimistic about their future, despite ongoing economic challenges, according to the latest Retail Radar report from Retail NZ.

The quarterly survey, covering April to June 2025, shows 69 per cent of retailers are confident their business will survive the next 12 months, up from 57 per cent a year ago.

The findings align with the NZIER’s latest business sentiment report, which found retailers were more optimistic than other sectors about the economic outlook.

Despite improved sentiment, 62 per cent of retailers missed their sales targets last quarter. However, 60 per cent expect to meet or exceed targets in the next three months, a sharp increase from 32 per cent in the same period last year.

“Retailers are resilient,” said Retail NZ CEO Carolyn Young. 

“While the economic environment remains uncertain, the sector is showing signs of cautious optimism, supported by inflation at 2.7 per cent, steady OCR at 3.25 per cent, and a slight uptick in card transaction spend.”

Retailers continue to face significant challenges, including rising rents, insurance premiums, freight costs, and the impact of increasing costs of living.

Retail NZ also surveyed members on facial recognition technology following a recent Foodstuffs trial. Only a few large retailers are exploring it. Barriers include high costs (69 per cent), public concern (36 per cent), and limited proof of its effectiveness (32 per cent).