New Zealand’s retail industry is one of the worst affected by a trying economic climate, according to recent figures disclosing a 37 per cent increase in the rate of business liquidations.

The data from credit reporting bureau Centrix, which covers the month of May, shows that only manufacturing and agriculture businesses reduced their respective liquidation rates. Retail was among the hardest hit sectors, only behind hospitality in terms of liquidation rate.

However, the data shows that the credit default rate, which occurs when a retailer with a loan fails to meet the terms of their agreement, decreased by 13 per cent.

Performance remains mixed within the sector, with fuel, motor vehicle and hardware retailers under continued pressure, while recreational goods retailers are showing signs of recovery.

This is the first set of liquidation data released since Finance Minister Nicola Willis read out the government’s budget for the year, one which industry body, Retail NZ, said was a “missed opportunity” for a blighted industry. 

These comments, shared by the group’s CEO, Carolyn Young, called for an increase to the new low-value import levy, and an additional tax on products that don’t meet certain ethical and quality standards, such as fast-fashion and low-value goods that are undercutting domestic retailers.

At the same time, retailers are grappling with declining spending trends. Recent data from Stats NZ said that retail spending from March to April dropped by around $89 million, a figure which comes in the wake of falling consumer confidence.