Retailers report slowing sales due to inflation and high interest rates

Rising economic pressures are forcing retailers to consider the future, and the vast majority of companies are missing sales targets.

Retail NZ said more than a third of retailers were unsure of their survival over the next 12 months. new report.

According to the report, 59% of the retailers that provided data failed to meet their sales targets in the three months ending in June. By comparison, last quarter he was 44%.

New Zealand Retail CEO Greg Harford said the sector was feeling the effects of high inflation and high interest rates, with consumers not spending.

“When they are [spending]as they re-prioritize spending on things like food, gas and mortgage payments, they have less disposable income,” Harford said.

Those who sold clothing and other durable goods suffered the most.

At the same time, the cost of doing business also increased.

“Supplier costs a lot and ultimately we have to pass it on to the consumer,” Harford said.

Labor costs and insurance premiums have also risen.

The outlook isn’t as good, with half of all retailers expecting to miss their targets again in the third quarter.

“The pessimism in the retail industry over the next three to six months is very concerning,” Harford said.

“I [don’t think] we are financially comfortable. ”