Chris Wilkinson: First Retail Group Managing Director on changing shopping habits

Shopping habits have shifted - cheap goods were up by 33% last year, which is more than double across 5 years. 

Kiwibank says spending on websites like Temu and Shine have stabilised at a high level. 

First Retail Group Managing Director Chris Wilkinson says price is the biggest driver for people deciding where to spend their money. 

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Episode Transcript

Speaker 1 (00:00):
Interesting read on shopping habits. Quevybank thinks spending on sites
like Timu and Shine could be stabilizing, But boy, that's
made the impact there, hasn't it. So when you look
at imports of small cheap goods, they're up by a
third last year, more than double in the past five years.
First Retail Group Managing director Chris Wilkinson's well this Chris,
very good morning to you.

Speaker 2 (00:17):
Good morning Mike.

Speaker 1 (00:18):
So what you read, it's stabilized at what a high level.
It's here to stay. It is what it is.

Speaker 2 (00:23):
Yeah, absolutely, Often as a consumers are getting accustomed to
this and it's becoming a pattern.

Speaker 1 (00:29):
Is it segment or sector specific or just you can
buy anything on it and a certain percentage of people do.

Speaker 2 (00:37):
Yeah. Team Who's reach is particularly strong in small items,
those variety type items, the likes of the products the
warehouse are selling. But then we've got Shine as well,
which is in terms of categories, that's your apparel category.

Speaker 1 (00:52):
Right. The whole argument they're doing this in Australia with
their election campaign at the moment, buying Australia and being
patriotic and stuff, is that dead in the water. Initially
you can say it and everyone goes, oh, yes, I
like to support, but in reality, we buy cheap. We
love cheap, and that's the beginning, middle and end of it.

Speaker 2 (01:07):
Pre Mikes through COVID, we saw that strength of local support,
but that only lasted for so long. Price is really
a big driver for people.

Speaker 1 (01:15):
Do you know anything about the deminimus thing. You know,
in America they've had this great debate. Are we missing
out on tremendous amounts of tax in this country by
bringing in stuff we could buy here?

Speaker 2 (01:24):
Yeah, there is an argument for that. I mean, we
are charging GST on these products, so at least the
government is getting some bite at the apple.

Speaker 1 (01:32):
Okay, once you read on retail at the moment we
sing light at the end of the tunnel or not.

Speaker 2 (01:36):
Oh yeah, there are some glimmers. It's still very tough,
but I think that you know, we've got the government
spending again now and that's been a really important thing.

Speaker 1 (01:43):
Okay, good on you, Chris. Appreciate time. Chris Wilkinson, First
Retail Group Managing For more from the Mic Asking Breakfast,
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