Retailers Cautious But Optimistic For Christmas

Retail NZ’s latest Retail Radar survey reveals that while retailers are cautiously optimistic heading into the festive season, most are not planning to hire additional staff for Christmas trading.

The survey, which captures insights from retailers across Aotearoa, shows that 64% of respondents are not planning to take on extra help this Christmas. This reflects the ongoing pressure many businesses are facing, with tight margins, cost-of-living concerns, and subdued consumer confidence continuing to shape trading conditions.

“Retailers are walking a fine line between caution and creativity,” Retail NZ Chief Executive Carolyn Young says. “While some are investing in fresh product lines and in-store experiences, many are holding off on hiring due to financial constraints. It’s a pragmatic response to a challenging environment. However, it will mean that university and college students will find it more difficult to get work over the summer holidays. And this will then impact the wider economy.”

The Retail Radar report highlights that although two-thirds of retailers remain confident about the future, 62% have not met their sales targets for the last six months. Some said they are adapting by streamlining operations and being selective with stock levels, rather than expanding teams.

Retail NZ is continuing to advocate for its members, including appearing before Parliament’s Finance and Expenditure Committee today to raise concerns about the proposed ban on card surcharges, which many retailers say will further impact their bottom line.

Despite the challenges, there are signs of resilience. 66% of respondents say they are confident or very confident about the future, similar to the same period of 2024 when it was 65%. Right now, retailers are heading into their busiest sales period with Labour Day, Black Friday, Christmas shopping and Boxing Day sales looking to boost foot-traffic and sales in store. Some retailers are seeing positive results from targeted investments in store upgrades and customer experience.

Retail NZ encourages consumers to support local businesses this Christmas and reminds retailers that its Advice Service is available to assist with staffing, performance, and compliance matters. The Advice Service is available to both Retail NZ members and the wider retail community.

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