Today in Business: September 3, 2025

Welcome to Today in Business - Powered by Spark for Business, an experimental AI podcast by the New Zealand Herald.
Each weekday, we bring you five stories, the best of the New Zealand Herald business journalism, summarised and delivered by an AI voice as an easily digestible recap.
It's Wednesday, September 3, 2025, and here are five stories you should know about.
A retail consultant has outlined what he believes were the key reasons behind the collapse of Smiths City, which has entered voluntary administration. Chris Wilkinson of First Retail Group says the 107-year-old appliance and furniture chain lacked a clear niche, and its "biggest misstep" was expanding into the North Island, where the brand was less recognised. He says Smiths City also took costly retail sites but struggled to compete with rivals Harvey Norman and Noel Leeming. Investment company Polar Capital bought the business in 2020 for around $60 million, when it had 29 stores, but administrators confirmed Smiths City now operates only nine outlets.
In other news, drug tester Glenn Dobson from The Drug Detection Agency says opiate use is increasingly being detected in workplaces. His comments come as aviation operators prepare to comply with new drug and alcohol rules under the Civil Aviation Act. The act requires management plans with random testing for safety-sensitive workers, protocols for non-negative results, and ongoing training. Employers & Manufacturers Association safety manager Paul Jarvie says companies should seek professional advice before establishing policies. The Civil Aviation Authority will review submissions from this month.
Turning to agriculture, prices at the latest Global Dairy Trade auction dropped 4.3 percent across the board. This follows a smaller decline of 0.3 percent at the previous event. Buttermilk powder recorded the steepest fall, down 6.3 percent, while cheddar was the only product to increase, rising 3.6 percent to an average of 4,709 US dollars per metric tonne. Lactose was not offered in this auction. The results come after Fonterra recently raised its 2024-25 season forecast Farmgate Milk Price to 10 dollars 15 cents per kilogram of milk solids, while retaining its 10 dollar forecast for the 2025-26 season.
Meanwhile, Kraft Heinz has announced plans to split into two separate companies, ending its structure formed by the 2015 merger. One company will manage sauces, spreads and seasonings, retaining brands such as Heinz Ketchup, Kraft Mac and Cheese, and Philadelphia cream cheese. The other will oversee Oscar Mayer, Kraft Singles and Lunchables, led by current chief executive Carlos Abrams-Rivera. Kraft Heinz shares dropped nearly 7 percent on the announcement, closing at 26 US dollars and 2 cents. The stock has fallen more than 20 percent in the past year and is down over 60 percent since the merger was completed.
And gold prices have surged to record highs, climbing about 45 percent year-on-year and more than 100 percent over five years. Auction houses say this has lifted values for gold jewellery, including pre-owned items. Webb's head of fine jewels Christine Power says more people are seeking appraisals, with plain gold pieces like fob chains and bangles seeing strong demand. A Tiffany yellow gold bangle recently sold for 12,500 dollars, above estimates. Cordy's auctioneer Andrew Grigg says some heavier items are melted down for redesign. The surge also boosts silver, which has risen 38 percent in the past year.
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