Retail not as good as May figures may indicate

Media release

Newmarket Business Association

Friday, 13 July 2007

Retail not as good as May figures may indicate

Auckland’s leading retailing district, Newmarket, says while Statistics New Zealand's monthly retail spend figures for May show an overall lift, things are certainly not buoyant across the country this winter.

"Sure we saw a lift in the car and supermarket categories, but we also saw falls in the likes of clothing and soft goods, footwear, appliances, department stores, accommodation, hospitality and goods hiring. What’s more, let’s not forget that these figures are for the month of May. We're now into mid-July and retail trading has probably got worse not better,” said Cameron Brewer, head of the Newmarket Business Association.

"Before the Reserve Bank starts thinking it needs to ratchet up the Official Cash Rate again to calm down the consumer, it needs to assess retail as it is right this minute – not as it was in May before the cold weather arrived.

“It is a tough winter for retailers up and down the country. Interest rate hikes are kicking in, consumers are losing confidence, and business compliance costs keep soaring – the latest being the accommodation of four weeks annual leave and Kiwisaver

“Another interest rate hike would be a killer for retailers. We urge the Reserve Bank to judge the retail environment on the here and now,” said Mr Brewer.

ENDS

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