Carolyn Young: Retail NZ CEO on increasing business optimism despite economic challenges

Retailers across the country are surprisingly optimistic in the face of ongoing economic challenges. 

The latest Retail NZ report reveals nearly 70% of retailers are confident their business will survive the next year, up from 57% for the same period last year. 

This comes despite 62% of retailers failing to meet sales targets for the same period.  

Retail NZ CEO Carolyn Young told Mike Hosking that optimism is stronger in the provinces and rural areas than it is in major cities like Auckland and Wellington. 

She says that the success the rural sector is experiencing is putting funds back into the local economies, which is creating more buoyancy. 

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Episode Transcript

Speaker 1 (00:00):
You want some more than news. I got some. Here
we go from our light at the end of the
tunnel file. We found renewed confidence in the retail sector,
if you can believe it. June numbers so nearly seventy
percent think they're going to make it through to next year.
That's up from fifty seven, so that's a material increase.
Carolyn Young is of course, the retail in New Zealand
chief executive, and she's with there's Carolyn morning to you.

Speaker 2 (00:18):
Good morning, Mike, thanks for having me.

Speaker 1 (00:19):
Not at all. Sixty two percent missed their sales target.
See I always think that's weird. If you set your
sales target all wrong in Wonky, of course you're going
to miss it. I mean, depends what you set it
at it, don't you.

Speaker 2 (00:29):
Well, obviously you're setting your sales target at stock that
you're purchasing, so you're purchasing stock on the expectation that
you'll sell it. And of course you're buying stock six
or nine months earlier. And we had been talking all
through twenty twenty four about the survive to twenty five.
But you know, twenty twenty five hasn't quite been as
boyant as great hope. So you know, looking ahead, retailers

(00:51):
are thinking Christmas is coming, you know boxing day sales,
you know the Christmas build up, you know that's going
to be a positive. I've already bought my Christmas in
summer stock. I'm starting to look at paying for it shortly.
Sales will return back at that time by the time
we get there with the economic sectors we're looking for.

Speaker 1 (01:10):
Which is my next question. This is the critical part
the seventy percent. How much of that seventy percent is
based on all the economists and the so called experts
saying stand by, stand by, stand by, the good news
is coming versus the so called reality. Might we be
wrong and therefore their optimism is delusional.

Speaker 2 (01:25):
Absolutely. Look, I think there's two factors in here. One
is that you know, all those economic factors, the headline
numbers are. You know, everyone's talking up a good talk,
and we actually have to see as turn around in
consumer confidence because until consumers see more money and their
wallet at the end of the week before their payday,
then they're not going to go out and spend any money.

Speaker 1 (01:44):
No. Is it geographic and sectorial in other words, I
mean some if you can't do well in Queenstown at
the moment, you're not doing business properly. So is it
random depending on where you look.

Speaker 2 (01:55):
It is definitely in the provinces and rural areas stronger
than it is in Auckland and Wellington for example. So
you know you're just talking about the rural sector that's
absolutely applicable here. You know, that is really holding up
that those funds are going back into those local economies.
So that's helping more buoyancy in those provincial areas in

(02:19):
New Zealand compared to the urban areas.

Speaker 1 (02:21):
Good stuff, Carolyn. Always enjoy to have you on the program.
Carolyn Young, Retail New Zealand Chief Executive.

Speaker 2 (02:26):
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