Chris Wilkinson: First Retail Group Managing Director on sluggish retail spending

Belief sluggish retail spending is a reminder retailers need to stick to the basics.

Stats NZ says core retail spending last month was only 0.4 percent higher year on year.

Spending on clothes fell most - at 4.2-percent - its fourth straight decrease.

First Retail Group Managing Director Chris Wilkinson told Ryan Bridge retailers have to be hungry in the market, with strong retail disciplines - but he understands it's tough. 

He says rising costs and distribution has made things challenging for retailers. 

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Episode Transcript

Speaker 1 (00:00):
So we're being more careful with our money. This is
card spending data, official stats out yesterday, seasonally adjusted down
one point four percent in June compared with May. We
were up slightly actually on the previous same month previous year.
Big hits A hospit down one point nine, apparel down
two point two, even fuels down one point seven. Chris Wilkinson,

(00:20):
First Retail Group Managing direct with me this morning. Chris,
good morning, Hey Ryan, how are you very well? Thank you?
So we're spending, we're saving on the petrol, but then
we're not going out and blowing it on discretionary.

Speaker 2 (00:30):
Yeah. People have been very cautious at the moment.

Speaker 1 (00:33):
Which is fair enough, isn't it. How is that impacting
retailers though?

Speaker 2 (00:37):
Ah, look, I think the retailers, you know, they've had
they've had some big challenges around cost increases. Distribution costs
have been seen right across our retail categories. So they're
fighting it a couple of a couple of fronts at
the moment.

Speaker 1 (00:53):
What can you actually do about that? For if you're
a retailer, because as you said, your costs her up,
so your instinct speed to discount, but then you're undermining
your business. What do you actually do to keep the
money that is there in your shop?

Speaker 2 (01:10):
Yeah? Yeah, you just have to be hungry. You really
have to go for your unfair share of the market. Good,
strong retail disciplines, be there, be open, love your customers,
and those are the simple fundamentals retailers need to remember.

Speaker 1 (01:25):
Good stuff. Chris GOODTEV on the show is always That's
Chris Wilkinson. First Retail Group with us this morning. For
more from Early Edition with Ryan Bridge, listen live to
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