Following on from a string of apparel business collapses and plummeting sales in 2011, many retailers are still pre-empting a challenging year ahead.
In Dun & Bradstreet's latest Business Expectations Survey, the results indicated sales and profit expectations were down year-on-year.
According to Dun & Bradstreet CEO, Christine Christian, 55 per cent of retailers surveyed said slowing demand was their main concern for the year ahead, with 56 per cent saying they anticipated online shopping to impact businesses.
“As the world contemplates a second recession, it is inevitable that local businesses will begin to question how this may affect their business in the coming year," Christian said.
While some retailers held off on launching sales until Boxing Day, a glut of shops kick-started pre-Christmas discounts in a bid to bump up the takings.
Surf Dive 'n' Ski was offering 50 per cent off all its dresses for a day and General Pants began marking apparel prices down days before December 25.
Chairman of New Zealand apparel company the Postie Plus Group (PPG), Richard Punter, said the period around Christmas and New Year is 'critical' for all retail businesses.
“This period leads into the very important ‘back to school’ time where we believe we can attain greater sales on the back of our ability to grow this sector of the business,” Punter said.
Chairman of Australian-based pearling business, Atlas South Sea Pearls Ltd, Steve Birckbeck, said he believes the longer term market effects on prices are uncertain and will be directly influenced by events in the global economy.
“While this is a difficult time to raise capital, Atlas is preparing itself for challenging times in the next 12 months,” Birckbeck said.