The rising costs of insurance, alongside Auckland housing market and economic uncertainties, has contributed to the increased pressure on consumer spending, according to the latest report from Retail NZ.
The report said the retail sector is facing an ongoing squeeze, resulting in strongly suppressed growth.
“Retailers are feeling the pressure of a strongly competitive environment, dampened consumer confidence and Government tax policy that favours foreign competitors,” Retail NZ general manager Greg Harford said.
“The retail sector, which employs 10% of all working New Zealanders, is directly impacted by these dynamics, as well as by the fact that consumers now shop 24/7 from a range of global websites, which directly compete with New Zealand retail firms but whose prices are not inflated by New Zealand GST and duty.”
The latest Stats NZ retail trade survey shows a seasonally-adjusted increase in domestic spending of a negligible 0.1% through to September 30, down from a 1.4% rise in the previous quarter.
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