It’s been a rough start to the year for New Zealand’s retail sector. Vacuum retailer Godfreys recently went into voluntary administration, while The Warehouse sold struggling outdoor brand Torpedo7 to an investment group for $1. Earnings season has been a mixed bag; some like jeweller Michael Hill saw their earnings drop, whereas others like Briscoe Group held up well, despite the tough economic conditions.
New Statistics New Zealand figures show why many retailers are feeling the pinch. Due to rising costs for necessities, Kiwis’ spending patterns have changed since before the Covid pandemic. Between the years ended June 2019 and June 2023, average household spending rose significantly in six categories:
• Food – up 28.1 percent
• Housing and household utilities – up 15.5 percent
• Health – up 18.5 percent
• Transport – up 16.5 percent
• Miscellaneous goods and services (including insurance and personal care) – up 21.6 percent
• Other expenditure (including payments) – up 31.4 percent.
Combined, these six groups accounted for 82.2 percent of total household spending in the year ended June 2023. Many Kiwi families have had to cut back on non-essentials, with the proportion spent on recreation and culture dropping from 9.6 percent to 8.3 percent over that four-year period.
Sticking with Stickman
Few local brands are more closely associated with shopping on a budget than Foodstuffs-owned supermarket chain PAK’nSAVE and its spokesman ‘Stickman’. spoke to the team at creative agency FCB Aotearoa – Managing Director Jane Wardlaw, Co-Chief Creative Officers Leisa Wall and
