Peak body Retail NZ’s latest Retail Radar survey shows that most retailers are not planning to hire additional staff for Christmas trading.
This comes as the retail market remains cautiously optimistic heading into the festive season.
The survey, which captures insights from retailers across Aotearoa, shows that 64 per cent of respondents are not planning to take on extra help this Christmas. According to Retail NZ, this reflects the ongoing pressure many businesses are facing, with tight margins, cost-of-living concerns and subdued consumer confidence continuing to shape trading conditions.
“Retailers are walking a fine line between caution and creativity,” Retail NZ CEO Carolyn Young said. “While some are investing in fresh product lines and in-store experiences, many are holding off on hiring due to financial constraints.
“It’s a pragmatic response to a challenging environment. However, it will mean that university and college students will find it more difficult to get work over the summer holidays. And this will then impact the wider economy.”
The Retail Radar report highlights that although two-thirds of retailers remain confident about the future, 62 per cent have not met their sales targets for the last six months. Some added they are adapting by streamlining operations and being selective with stock levels, rather than expanding teams.
Despite the challenges, 66 per cent of respondents say they are confident or very confident about the future, similar to the same period of 2024 when it was 65 per cent. Retailers are heading into their busiest sales period with Labour Day, Black Friday, Christmas shopping and Boxing Day sales looking to boost foot-traffic and sales in store.
Retail NZ reported that some retailers are seeing positive results from targeted investments in store upgrades and customer experience.