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]
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]
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]
ColourPlus, a franchise established in 1999 in Hastings Central, has nine stores.[30][31] This is down from 26 stores in 2016,[31] and 40 stores in 1999.[29]
Kings Plant Barn, established in Takapuna, Auckland in 1992, has eight stores, all within Auckland.[33]
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
Z Energy has 227 petrol stations.[37] It traces its origins back to 1912.[38]
BP has 240 petrol stations. It began in 1946.[39][40]
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]
DEKA was a chain of department stores established in 1988 through the rebranding of Woolworths and McKenzies stores.[81] It had 61 stores in 2000.[82] The stores were closed or rebranded as Farmers stores in 2001.[81]
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.[83] The number of businesses increased from 1,029 to 1,269.[84] The number of employees increased from 5,100 to 8,600.[85]
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.[109] The number of businesses increased from 2,442 to 2,865.[110] The number of employees increased from 15,000 to 21,000.[111]
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.[180] The number of businesses increased from 468 to 834.[181] The number of employees increased from 16,100 to 19,800, but continues to fluctuate each year.[180]
Repco has been operating in New Zealand since 1981 and has 81 stores.[182]
Supercheap Auto opened its first stores in New Zealand in 2003 and now has 46 stores in the country.[183]
Recreational goods retailing
Sales values in the sector increased from $1,531.8 million in 2000 to $2,858.8 million in 2021.[184] The number of businesses increased from 2,034 to 1,821.[185] The number of employees increased from 9,600 to 10,400.[186]
Paper Plus Group owns two bookstore franchises. Paper Plus began as National Stationers in 1983 before rebranding as Paper Plus in 1990;[191] it has 91 stores.[192][193][194]Take Note was established in 2001 through the rebranding of Top Line and Paper World stores;[193] it has seven stores.[195]
Office Spot is a brand of stationery stores. Its original store, opened in Ashburton in 2007, is the only one still operating.[209][210]
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.[211]
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.[212][213][214]
In June 2024, RNZ reported that overseas-based online retailers such as Temu, Amazon and AliExpress were edging out New Zealand retailers. Infometrics chief forecaster Gareth Kiernan reported there was a 20 percent increase in 2024 in direct imports of low-value goods by households from overseas retailers. He attributed the growing popularity of online shopping to the COVID-19 lockdowns, the return of international freight and supply chains and the rising cost of living making people more price-sensitive and interested in bargains.
According to NZ Post, 17% of New Zealanders ranked Temu as the online retailer they used the most.[215]
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.[216] The number of businesses increased from 1,485 to 1,734.[217] The number of employees has increased from 7,000 to 9,100, except for a decline following the Global Financial Crisis.[218]
Lincraft is a chain of six homeware stores. The first New Zealand store opened in 2005.[229]
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.[230] The number of businesses increased from 468 to 975.[231] The number of employees increased from 2,800 to 3,650.[232]
Sales values in the sector increased from $572.6 million in 2000 to $1.7483 billion in 2021.[248] The number of businesses increased from 2,310 to 2,982.[249] The number of employees increased from 8,000 to 11,100.[250]
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