Retailing in New Zealand explained
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.
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.
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]
Foodstuffs
Woolworths New Zealand
Independent
- Faro, established in 2006, has 7 stores, all in Auckland.[22]
- Night 'n Day, established in 1984, has 51 stores.[23]
Hardware, building and garden supplies
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]
Home decorating
Garden centres
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
Pharmaceutical and other store based retailing
Sales values in the sector increased from $2,507.7 million in 2000 to $6,049.1 million in 2021.[48]
The number of businesses has declined from 6,423 to 5,772.[49] The number of employees increased from 19,000 to 23,600.[50]
Pharmacies
Variety
Department stores
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]
National chains
Regional department stores
- Ballantynes is a Christchurch-based chain of two department stores established in 1854.[71]
- Smith & Caughey's is an Auckland-based chain of two stores established in 1880.[72]
- David Jones has had a store in Newmarket, Auckland since 2019.[73] It previously had a store in Wellington CBD between 2016 and 2022.[74]
Defunct stores
- Arthur Barnett was established in Dunedin Central in 1903. It had five stores by 1992, but was taken over by H & J Smith in 2015.[75]
- D.I.C. was established in Dunedin Central in 1884 and had 16 stores by 1988. It closed in 1992.[76]
- H & J Smith was an Invercargill-based chain of three stores established in 1900 and closed in 2023.[77]
- Kirkcaldie & Stains was established on Lambton Quay in Wellington CBD in 1863. It closed in 2016.[78]
- DEKA was a chain of department stores established in 1988 through the rebranding of Woolworths and McKenzies stores.[79] It had 61 stores in 2000.[80] The stores were closed or rebranded as Farmers stores in 2001.
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.[81] The number of businesses increased from 1,029 to 1,269.[82] The number of employees increased from 5,100 to 8,600.[83]
Electronic goods
Telecommunications
The three major companies in the New Zealand telecommunications industry operate retail stores. Spark New Zealand has 63 stores.[103] [104] One NZ also has 63 stores.[105] 2degrees has 59 stores.[106]
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.[107] The number of businesses increased from 2,442 to 2,865.[108] The number of employees increased from 15,000 to 21,000.[109]
Clothing
- Just Group has 167 stores: 45 Just Jeans stores,[110] 28 Jay Jays stores,[111] 19 Jacqui E stores,[112] 19 Dotti stores,[113] and 11 Portmans stores.[114]
- Cotton On Group has 91 stores: 28 Cotton On stores,[115] [116] 23 Cotton Body stores, 25 Cotton On Kids stores, and 15 Peter Alexander stores.[117] Its Supré chain had 19 stores until its closure in 2020.[118] [119]
- Hallensteins Glassons has 75 stores: 41 Hallenstein Brothers stores,[120] [121] and 34 Glassons stores.[122] [123]
- Barkers has 63 stores: 31 Barkers Mens Clothing stores and 32 Max Fashion stores.[124] [125] [126]
- Bendon Lingerie has 36 lingerie stores.[127] [128]
- Retail Apparel Group has 33 stores: 11 Tarocash stores,[129] nine Johnny Bigg stores,[130] [131] [132] eight yd. stores,[133] and five Connor stores,[134]
- Country Road Group has 19 stores: 11 Country Road stores,[135] and eight Witchery stores.[136]
- Pepkor has 60 Postie stores.[137] [138]
- Rodd & Gunn has 28 stores[139] [140]
- Huffer has 13 stores.[141] [142] [143]
- Icebreaker has 13 stores.[144] [145]
- H&M has nine stores.[146] [147]
- Nike has eight stores.[148]
- Under Armour has four stores.[149] [150]
- R. M. Williams has four stores.[151]
- Zara has one store.[152] [153]
- Pumpkin Patch had 48 stores in 2010, but all physical stores had closed by 2017.[154] [155] [156]
Shoes
- Hannahs, established in 1868, has 70 sites branded as Hannahs and Number One Shoes.[157] [158] [159]
- Overland Footwear Group, established in 1948, has 63 stores branded as Merchant 1948 and Mi Piaci.[160] [161]
- Accent Group, established in 1988, has 60 stores branded as Platypus,[162] Hype DC,[163] The Athlete's Foot,[164] Timberland,[165] Dr. Martens,[166] and SUBTYPE.[167]
- Shoe Clinic is a franchise of 19 sports shoes stores.[168]
- Smith's Sports Shoes is a franchise of 14 sports shoes stores, established on Dominion Road, Auckland in 1949.[169]
- Foot Locker has 13 outlets.[170]
- NOVO Shoes have 13 outlets.[171]
- Maher Shoes has six stores.[172]
Jewellery
Motor vehicle and parts retailing
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.[178] The number of businesses increased from 468 to 834.[179] The number of employees increased from 16,100 to 19,800, but continues to fluctuate each year.[178]
Motor vehicle parts
New Zealand has two main chains of automotive part retailers sell a range of automotive parts, automotive accessories, power tools and engine oils.
Repco has been operating in New Zealand since 1981 and has 81 stores.[180]
Supercheap Auto opened its first stores in New Zealand in 2003 and now has 46 stores in the country.[181]
Recreational goods retailing
Sales values in the sector increased from $1,531.8 million in 2000 to $2,858.8 million in 2021.[182] The number of businesses increased from 2,034 to 1,821.[183] The number of employees increased from 9,600 to 10,400.[184]
Sporting goods
Books and toys
Stationery
- Warehouse Stationery is a chain of 67 stationary stores. The first store opened in 1995.[204]
- Smiggle is chain of 22 novelty stationary stores.[205] It was established by Just Group in 2008[206]
- Typo is a chain of 16 novelty stationary stores. It is owned by the Cotton On Group.
- Office Spot is a brand of stationery stores. Its original store, opened in Ashburton in 2007, is the only one still operating.[207] [208]
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.[209]
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.[210] [211] [212]
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.[213]
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.[214] The number of businesses increased from 1,485 to 1,734.[215] The number of employees has increased from 7,000 to 9,100, except for a decline following the Global Financial Crisis.[216]
Furniture and floor coverings
Some retailer specialise in furniture, such as Nood Furniture (15 stores),[217] Freedom Furniture (14 stores),[218] and Nick Scali Furniture (five stores).[219] Harvey Norman and Smiths City sell a combination of household appliances.[66] Department store chains like The Warehouse, Farmers and Kmart also sell furniture.[63] [65] [68]
Houseware and textiles
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.[228] The number of businesses increased from 468 to 975.[229] The number of employees increased from 2,800 to 3,650.[230]
Major buying networks
Other franchises
Specialised food retailing
Sales values in the sector increased from $572.6 million in 2000 to $1.7483 billion in 2021.[246] The number of businesses increased from 2,310 to 2,982.[247] The number of employees increased from 8,000 to 11,100.[248]
Bakeries
Specialist food retailers
See also
Notes and References
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- Web site: Sales value for the electrical and electronic goods retailing industry in New Zealand . figure.nz . Figure NZ Trust.
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- Web site: Noel Leeming - About Us. 2003-10-10. https://web.archive.org/web/20031010162518/http://www.noelleeming.co.nz/webapp/wcs/stores/servlet/HelpDisplay?storeId=10001&catalogId=10001&topic=CustServ&page=AboutUs. 2020-05-20. 10 October 2003.
- Web site: Lighting Direct . lightingdirect.co.nz/ . .
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- News: Ranford . Chloe . Fate of Blenheim Smiths City uncertain . Local Democracy Reporting . . 10 May 2020.
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- Web site: Bond & Bond . bondandbond.co.nz . . https://web.archive.org/web/20130208113807/http://www.bondandbond.co.nz/shop/ . 8 February 2013 . dead.
- Web site: Dick Smith . dicksmith.co.nz . Dick Smith Holdings . https://web.archive.org/web/20160223041755/http://www.dicksmith.co.nz/ . 23 February 2016.
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- Web site: Store Locator - Dick Smith NZ Mobile . dicksmith.co.nz . Dick Smith NZ.
- News: Gannon. Genevieve. Woolworths to sell Dick Smith Electronics. 9 February 2015. The Sydney Morning Herald. 31 January 2012.
- News: Mason. Max. Dick Smith flat after underwhelming debut. 9 February 2015. The Age. 5 December 2013.
- News: Slade . Maria . Closing time for Hill and Stewart after 60 years . . APN News & Media . 14 January 2010.
- Web site: JB Hi-Fi buys NZ chain for $15m. 7 July 2017. 12 December 2006. The Sydney Morning Herald – smh.com.au.
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- News: Newton . Gary . JB Hi-Fi reports loss in NZ but continues to expand . . Allied Press . 9 August 2010.
- Web site: Jaycar . jaycar.co.nz . .
- Web site: Spark . spark.co.nz . Spark New Zealand.
- News: Telecom looks to sell retail stores . . Wilson & Horton . 6 January 2004.
- Web site: One NZ Homepage . 2023-07-02 . OneNZ . en.
- Web site: 2degrees . 2degrees.nz . 2degrees.
- Web site: Sales value for the clothing, footwear and personal accessories retail industry in New Zealand . figure.nz . Figure NZ Trust.
- Web site: Enterprises in the clothing, footwear and personal accessories retail industry in New Zealand . figure.nz . Figure NZ Trust.
- Web site: Employees in the clothing, footwear and personal accessories retail industry in New Zealand . figure.nz . Figure NZ Trust.
- Web site: Just Jeans . justjeans.co.nz . Just Group.
- Web site: Jay Jays . jayjays.com.au . Just Group.
- Web site: Jacqui E . jacquie.co.nz . Just Group.
- Web site: Dotti . dotti.co.nz . Just Group.
- Web site: Portmans . portmans.nz . .
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- Web site: Our History - Cotton on Group.
- Web site: Peter Alexander . peteralexander.co.nz .
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- News: Scherer . Karyn . US bookstore crosses Kiwi border . . 30 June 2000.
- News: Scherer . Karyn . The bookshop that lost the plot . . 7 March 2011.
- Web site: About Us - Warehouse Stationery . warehousestationery.co.nz . The Warehouse Group.
- Web site: Smiggle . smiggle.co.nz . Just Group.
- Web site: About Smiggle . westfield.com.au . . https://web.archive.org/web/20130602132856/http://www.westfield.com.au/au/retailers/smiggle . 2 June 2013.
- Web site: Office Spot . officespotashburton.co.nz . Office Spot Ashburton.
- News: Take Note Dinsdale scoops up two big awards . . . 1 August 2012.
- Web site: Should we change how retail and wholesale trade businesses are classified? . shapeyouracc.co.nz . Accident Compensation Commission.
- Web site: Enterprises in the non-store and commission-based retailing industry in New Zealand . figure.nz . Figure NZ Trust.
- Web site: Employees in the non-store and commission-based retailing industry in New Zealand . figure.nz . Figure NZ Trust.
- Web site: Sales value for the non-store and commission-based retailing industry in New Zealand . figure.nz . Figure NZ Trust.
- News: Temu, Amazon and AliExpress cash in as local shops do it tough . 23 June 2024 . . 21 June 2024 . https://web.archive.org/web/20240621033506/https://www.rnz.co.nz/news/business/520152/temu-amazon-and-aliexpress-cash-in-as-local-shops-do-it-tough . 21 June 2024. live.
- Web site: Sales volume for the furniture, floor coverings, houseware and textile retailing industry in New Zealand . figure.nz . Figure NZ Trust.
- Web site: Enterprises in the furniture, floor coverings, houseware and textile retailing industry in New Zealand . figure.nz . Figure NZ Trust.
- Web site: Employees in the furniture, floor coverings, houseware and textile retailing industry in New Zealand . figure.nz . Figure NZ Trust.
- Web site: Nood . nood.co.nz . Nood.
- Web site: Freedom Furniture . freedomfurniture.co.nz . Greenlit Brands.
- Web site: Nick Scali . nickscali.co.nz . Nick Scali Furniture.
- Web site: Briscoes . briscoes.co.nz . .
- Web site: Briscoes Group . briscoegroup.co.nz . .
- Web site: Stevens . stevens.co.nz . James Pascoe Group.
- Web site: Spotlight . spotlightstores.com . .
- Web site: Spotlight Group . spotlightgroup.com . Spotlight Group.
- Web site: Living & Giving . livingandgiving.co.nz . Briscoe Group.
- News: Hendery . Simon . Pacific snaps up Living & Giving gift chain . . Wilson & Horton . 2 October 2000.
- Web site: Lincraft . lincraft.co.nz . Lincraft.
- Web site: Sales value for the liquor retailing industry in New Zealand . figure.nz . Figure NZ Trust.
- Web site: Enterprises in the liquor retailing industry in New Zealand . figure.nz . Figure NZ Trust.
- Web site: Employees in the liquor retailing industry in New Zealand . figure.nz . Figure NZ Trust.
- Web site: Liquor Centre . liquor-centre.co.nz . Metcash.
- News: House . Alana . Lion to sell its Liquor King retail stores . Drinks Digest . 18 August 2021.
- Web site: The Bottle-O . thebottleo.co.nz . Tasman Liquor.
- Web site: Merchants Liquor . merchantsliquor.co.nz . Tasman Liquor.
- News: Kilgallon . Steve . Bottle-O boss Grant Simpson steadfastly refuses to speak about migrant exploitation in some of its stores . . 1 November 2020.
- Web site: Liqourland . liquorland.co.nz . Foodstuffs.
- News: Foodstuffs picks up more stores for Henry's chain . New Zealand Press Association . . 20 March 2007.
- News: Dacruz . Michelle . The Mill launches no-frills liquor store . . . 12 March 2006.
- News: Foodstuffs opens Duffy & Finn's store in Auckland . . 30 November 2006.
- Web site: Thirsty Liquor . thirstyliquor.co.nz.
- Web site: Black Bull Liquor . blackbullliquor.co.nz.
- Web site: Big Barrel . bigbarrel.co.nz . Big Barrel.
- Web site: Super Liquor . superliquor.co.nz . Super Liquor.
- Web site: The Trusts . thetrusts.co.nz . The Trusts.
- News: Tokalau . Torika . Caught in the middle of an alcohol monopoly, some residents say Auckland beachside community in dire need for change . . 20 September 2020.
- Web site: Sales value for the specialised food retailing industry (excluding liquor) in New Zealand . figure.nz . Figure NZ Trust.
- Web site: Enterprises in the specialised food retailing industry in New Zealand . figure.nz . Figure NZ Trust.
- Web site: Employees in the specialised food retailing industry in New Zealand . figure.nz . Figure NZ Trust.
- Web site: Bakers Delight . bakersdelight.co.nz . Bakers Delight.
- News: Sherer . Karen . Franchise aims for more dough . . . 30 June 2000.
- Web site: Vetro . vetro.co.nz . Vetro.
- News: Sharpe . Marty . From a small shed to a growing concern . . . 25 June 2012.