Retailer optimism improving for 2025 – survey

24th February 2025 By Staff Reporter | news@propertyticker.co.nz | @propertyticker

Retailers are feeling confident about their businesses’ surviving 2025, despite not meeting sales targets over the Christmas season, according to the latest Retail NZ Retail Radar survey.

The quarterly survey showed confidence in survival continuing its upward trend with 70% of respondents confident or very confident their retail business will survive the next year, up from 65% in the third quarter from July to September 2024.

Retail NZ chief executive Carolyn Young said this continued positivity could be due to inflation staying steady at 2.2% for the last two quarters, the prospect of further Official Cash Rate cuts and the government’s intention to make economic growth its top priority this year are all contributing to this positivity.

Retailers’ improved confidence levels are despite Stats NZ reporting that total retail sales were down 1% in December 2024 compared to December 2023, continuing the difficult trading environment experienced by retailers throughout 2024.

In the Retail Radar for Q3 2024, 57% of retailers had predicted they would meet or exceed their targets in Q4. The actual results for Q4 were a game of two halves, with only 45% meeting their targets, but 17% of retailers exceeding targets, well ahead of the 5% who expected to.