Summarised by Centrist
Businesses are closing as consumer confidence plummets. People are spending on what they need rather than what they want, according to business experts.
It’s bad news as retailers say they are facing the worst conditions in recent memory.
Chris Wilkinson of First Retail Group said there are unprecedented challenges faced by retailers globally – not just in NZ. A ‘back to basics’ restructuring by the country’s largest retailer, The Warehouse Group, is a sign of the times.
Retail NZ’s CEO, Carolyn Young, notes that rising costs and tight margins are driving some businesses to shut down. She compares the current crisis to the 1987 crash, stressing the importance of surviving the next six to eight months.
“If you’ve got some cash then you can get through,” she told RNZ.
Business leaders in major cities report empty shop fronts and a drop off in spending, made worse by inflation and high-interest rates.
Yet, RNZ reports that despite the bleak outlook, some businesses remain hopeful that interest rates may ease, allowing them to weather the economic storm.
