About 71 percent of respondents to the quarterly Retail Radar survey advised that they are confident or very confident that their business will survive the next 12 months, with only 12 percent either not confident or not at all confident of survival.
The latest Retail Radar quarterly survey, conducted among Retail NZ members, indicated the improvement in retailers' confidence levels during 2023's last quarter.
This is a marked improvement on the September quarter where only 57 percent of retailers were confident of their business sustainability, said Retail NZ Chief Executive Carolyn Young.
Although the economic outlook is for very strong headwinds for the next 12 months, retailers are expecting to see greater support from the new government, Young said.
The new-found confidence is also surprising given that 56 percent of retailers recorded that they did not achieve their sales targets in the December quarter, she said, adding that in September, 56 percent of retailers said they were confident of achieving their sales targets for the quarter, but only 44 percent achieved this goal, the survey said.
Many retailers rely heavily on strong sales in the December quarter, with key sales periods including Black Friday and Christmas promotions, to ensure they have a buffer for quieter months. However, more than 50 percent of retailers not meeting targets could spell challenges later this year, according to the survey.
Inflation remains the most significant issue for retailers with 57 percent expressing concern, followed by wage increase and freight costs, it said, adding that Retail NZ will continue to advocate for changes that will relieve pressure on retailers.
Latest comments