Retail NZ’s Q3 2024 Retail Radar report highlights a marked increase in retailer confidence, with 65% of respondents expressing confidence or strong confidence in their business’s survival over the next year. This reflects an improvement from 58% in the previous quarter and 57% during the same period in 2023.
Retailers show cautious optimism for Q4, with 57% expecting to meet or exceed sales targets, up from 32% in the previous survey. Despite this, 70% of respondents indicated that Q3 targets were not met, reflecti ongoing challenges in the sector.
Economic Climate Boosts Optimism
Rising confidence aligns with economic shifts, including annual inflation falling to 2.2% and reductions in the Official Cash Rate (OCR). Retailers report slightly less concern about the cost of living, with 75% still listing it as a key issue, down from 80% in Q2 2024.
Other operational concerns include rising insurance costs, which remain significant but have eased slightly (53%, down from 55% in Q1 and Q2). Freight costs have seen an increase in concern, with 46% of retailers citing it as a challenge compared to 40% previously.
Mixed Views on Government Performance
Retailers remain divided in their assessment of the Coalition Government’s first year in office. Over 40% of respondents are non-committal, while the rest are evenly split between positive and negative evaluations of government performance.
Implications for the Jewellery Sector
For jewellers, the findings suggest cautious optimism for the Christmas sales period, a historically busy quarter.
Although inflation and operational costs remain significant concerns, improved economic conditions and rising retailer confidence may offer opportunities for stronger performance. Preparing for challenges related to freight, insurance, and payment costs remains essential.
