Retailing in New Zealand

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Retailing in New Zealand is an important sector in the economy of New Zealand, as a channel for a large proportion of household spending and international visitor spending. [1]

Contents

The overall size of the sector has been increasing since the end of the 1997 Asian financial crisis, with retail sales increasing by 30% between 1999 and 2005. One contributing factor was the growth of larger stores with greater buying power and economies of scale, at the cost of smaller bricks and mortar merchants. Another contributing factor was low price inflation, with the price of imported goods falling 12% during that period. [1]

By 2004, about 15% of New Zealand businesses were retail outlets. These businesses accounted for 19% of total employment and 7.5% of the Gross Domestic Product with total sales of about $51 billion. Supermarket and grocery stores made up about 28% of non-auto sales and 16% of retail employees. [1]

The beginning of the COVID-19 pandemic in New Zealand had a major impact on the retail sector. Sales dropped 15% in the June 2020 quarter before increasing 7.4% in the September 2020 quarter. [2] The sector recovered faster than originally expected. [3]

In 2021, BDO identified the key trends in the New Zealand retail sector to be rising staffing costs, increased online shopping, changing technology, and the need to improve efficiency without compromising customer experience. [4]

Supermarkets and grocery stores

Sales values in the sector increased from $8.3531 billion in 2000 to $22.5867 billion in 2021. [5] The number of businesses increased from 2,679 to 3,525. [6] The number of employees increased from 46,700 to 62,600. [7]

Foodstuffs

Woolworths New Zealand

Independent

Hardware, building and garden supplies

Sales values in the sector increased from $3,575.4 million in 2000 to $9,754 million in 2021. [24] The number of businesses declined from 1,542 to 1,401. [25] The number of employees increased from 13,000 to 23,800. [26]

Home decorating

Garden centres

Fuel retailing

New Zealand has several petrol station chains and franchises which supply fuel for cars, motorbikes, trucks and boats.

The sector has undergone significant consolidation between 2000 and 2021. The number of businesses almost halved from 1,245 to 660. [34] The number of employees also halved from 12,400 to 6,200. [35]

Sales values in the sector increased from $3.4436 billion in 2000 to $7.642 billion in 2021. It reached a record high of $9.0095 billion in 2022. [36]

Petrol stations

Pharmaceutical and other store based retailing

Sales values in the sector increased from $2,507.7 million in 2000 to $6,049.1 million in 2021. [48]

The number of businesses has declined from 6,423 to 5,772. [49] The number of employees increased from 19,000 to 23,600. [50]

Pharmacies

Variety

Department stores

Sales values in the sector increased from $2,556.1 million in 2000 to $5,774.6 million in 2021. [60] The number of businesses decreased from 18 to 12. [61] The number of employees has fluctuated from 18,700 to 19,700. [62]

National chains

Regional department stores

Defunct stores

Electrical and electronic goods retailing

Sales values in the sector increased from $1,385.4 million in 2000 to $4,626.2 million in 2021. [82] The number of businesses increased from 1,029 to 1,269. [83] The number of employees increased from 5,100 to 8,600. [84]

Electronic goods


Telecommunications

The three major companies in the New Zealand telecommunications industry operate retail stores. Spark New Zealand has 63 stores. [104] [105] One NZ also has 63 stores. [106] 2degrees has 59 stores. [107]

Clothing, footwear and personal accessory retailing

Sales values in the sector increased from $1,811.1 million in 2000 to $3,942 million in 2021. [108] The number of businesses increased from 2,442 to 2,865. [109] The number of employees increased from 15,000 to 21,000. [110]

Clothing

Shoes

Jewellery

Motor vehicle and parts retailing

Quarterly sales revenue in motor vehicle and parts retailing sector increased from $1.5565 billion in the first quarter of 2000 to $3.8335 in the first quarter of 2021. [179] The number of businesses increased from 468 to 834. [180] The number of employees increased from 16,100 to 19,800, but continues to fluctuate each year. [179]

Motor vehicle parts

New Zealand has two main chains of automotive part retailers sell a range of automotive parts, automotive accessories, power tools and engine oils.

Repco has been operating in New Zealand since 1981 and has 81 stores. [181]

Supercheap Auto opened its first stores in New Zealand in 2003 and now has 46 stores in the country. [182]

Recreational goods retailing

Sales values in the sector increased from $1,531.8 million in 2000 to $2,858.8 million in 2021. [183] The number of businesses increased from 2,034 to 1,821. [184] The number of employees increased from 9,600 to 10,400. [185]

Sporting goods

Books and toys

Stationery

Non-store and commission based retailing

Non-store retailers are businesses that have no permanent physical bricks and mortar retail stores, and exclusively sell their products exclusively through online stores, market stores, telemarketing, door-to-door sales and vehicles. [210]

The number of businesses in the sector dropped to 1,299 businesses in 2003. The number of employees dropped to 1,450 in 2004. Since then, with the rise of e-commerce, the number of businesses has consistently increased. By 2021, the consisted of 2,937 businesses, with 3,350 employees and sales volumes of $2.3 billion. [211] [212] [213]

Furniture, floor coverings, houseware and textile retailing

Sales values in the sector increased from $1,318.8 million in 2000 to $2,767.5 million in 2021. [214] The number of businesses increased from 1,485 to 1,734. [215] The number of employees has increased from 7,000 to 9,100, except for a decline following the Global Financial Crisis. [216]

Furniture and floor coverings

Some retailer specialise in furniture, such as Nood Furniture (15 stores), [217] Freedom Furniture (14 stores), [218] and Nick Scali Furniture (five stores). [219] Harvey Norman and Smiths City sell a combination of household appliances. [66] Department store chains like The Warehouse, Farmers and Kmart also sell furniture. [63] [65] [68]

Houseware and textiles

Liquor retailing

Liquor retailers can sell beer, wine and cider like supermarkets and grocery stores, as well as spirits and RTDs. Sales values in the sector increased from $820 million in 2000 to $1.9375 billion in 2021. [228] The number of businesses increased from 468 to 975. [229] The number of employees increased from 2,800 to 3,650. [230]

Major buying networks

Other franchises

Specialised food retailing

Sales values in the sector increased from $572.6 million in 2000 to $1.7483 billion in 2021. [246] The number of businesses increased from 2,310 to 2,982. [247] The number of employees increased from 8,000 to 11,100. [248]

Bakeries

Specialist food retailers

See also

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