Confidence levels among retailers across New Zealand are beginning to return to normal after a “shock” period brought about by the beginning of the war in the Middle East.

The findings come from Retail NZ’s most recent quarterly survey, which saw 69 per cent of respondents say they feel confident of surviving the next 12 months in business, up from 61 per cent in the prior quarter. 

At the same time, 34 per cent said they expect to meet or exceed their targets in the following quarter.

“It’s great to see confidence levels returning to what we consider normal this quarter, after the shock felt in the sector due to tensions erupting in the Middle East at the end of February and through March,” said Retail NZ CEO, Carolyn Young. 

The proportion of retailers identifying freight costs as their primary concern has fallen by 16 per cent, Retail NZ added. “While that number is still higher than we’ve seen in our 2024 and 2025 surveys, the fact we’re yet to see diesel and petrol prices return to the extreme highs we saw in April will be providing some comfort for retailers despite the ongoing tensions,” Young said. 

The primary concern among retailers is still the cost of living. In the most recent quarter, more respondents said they are accepting ‘buy now, pay later’ (BNPL) payment options.

“Almost half of respondents said they offered BNPL, with our members telling us their customers are using it for everything from small impulse buys through to big purchases worth thousands of dollars,” Young said. 

“As a result, our members have mixed views on whether offering BNPL is worth it for their business; about 45 per cent of those surveyed said it is worth it, but almost 38 per cent said it wasn’t. Another 22 per cent were undecided.”