Retailers across New Zealand are entering the Christmas season with cautious optimism but limited plans to expand staff, according to the latest Retail Radar survey from Retail NZ.

The quarterly survey found that 64 per cent of retailers are not planning to hire additional staff for the Christmas period, citing financial pressures linked to tight margins, cost-of-living concerns, and subdued consumer confidence.

“Retailers are walking a fine line between caution and creativity,” said Retail NZ CEO Carolyn Young. 

“While some are investing in fresh product lines and in-store experiences, many are holding off on hiring due to financial constraints. It’s a pragmatic response to a challenging environment. 

“However, it will mean that university and college students will find it more difficult to get work over the summer holidays. And this will then impact the wider economy.”

The report found that while two-thirds of retailers remain confident about the future, 62 per cent failed to meet sales targets over the past six months. 

Many businesses said they have been adapting by improving operations and better managing stock levels rather than expanding teams.

Meanwhile, Retail NZ has appeared before Parliament’s Finance and Expenditure Committee to raise concerns about a proposed ban on card surcharges, which it says could further reduce retailer profitability.

Despite ongoing challenges, 66 per cent of respondents said they are confident or very confident about the future – consistent with the same period last year. 

Retailers are now preparing for key sales events such as Labour Day, Black Friday, Christmas and Boxing Day, which are expected to drive higher store traffic and spending.