Kiwi independent retailers thrive in global comparison
08:00 NZT, 20 June 2019: Auckland, New Zealand - Retail is far from dead. In fact, independent retail is killing it. Key findings announced today by retail management software company Vend, in its 2019 Retail Benchmarks Report, show the Kiwi boutique retail industry is in great shape.1
The report, which takes a close look at the performance of independent retailers around the world across a number of industries in the last financial year, found that New Zealand indie retailers are punching well above their weight.
They average a higher monthly revenue per store and have a higher average number of monthly transactions per store than all other markets in the report, including the US and Australia.
Kiwi independent retailers outperform retailers around the world when it comes to monthly store revenue, averaging a healthy NZ$32,751. They’re followed closely by indie retailers in the US whose stores earn $32,732 monthly and are 3% ahead of their Australian counterparts who earn an average monthly revenue of $32,661 per store.
They’re also averaging a higher number of transactions per store, per month at 559, compared to the next closest market, the UK at 554. They are followed by North America at 499, while those in Australia and South Africa had 447 and 444 respectively.
Vend founder and director, Vaughan Fergusson, says of the Report: “New Zealanders are clearly choosing to shop with independent retailers, which is a testament to the unique products and experiences local boutiques can offer.
“We’re seeing proof that the physical, bricks and mortar segment of retail is crucial to success. Customers crave a great in-store experience where they can touch and feel beautifully curated product ranges. They want social interactions when they shop, and they want the excitement of discovering something for themselves - almost like a treasure hunt.”
The Retail Benchmarks Report found that New Zealand’s boutique retailers have 7% more known customers each month than independent retailers across the ditch, which, according to Fergusson, indicates they’re probably using technology to increase customer loyalty.
Perhaps unsurprisingly for a country known for its sports and social nature, it was beer, wine, and spirit stores, and sporting goods stores which had the highest gross revenue per month at $79,210 and $54,707 respectively. While cosmetics and beauty stores have the lowest average revenue each month at $17,234. This was quite different to independent retailers in Australia where furniture, electronics and appliance stores had the highest levels of revenue.
The Retail Benchmarks Report analysed gross profit margins of Vend retailers and found that on average, independent retailers had a margin of 53.33%. US retailers exceeded this metric, having an average gross margin of 53.46. While Australia, New Zealand, and the UK all have gross margins that are just above 52%.
To celebrate the launch of the report, Vend has also produced an interactive calculator - a platform that allows retailers to track their own business’ performance against competitors both globally and locally.
calculator allows retailers to input their own data and
track their performance across key metrics such as: average
monthly revenue, average gross margin, average number of
monthly transactions, average transaction values, average
(number of items per sale) and average number of customers.
To read a full copy of the Report, visit www.vendhq.com/retail-benchmarks