Retailing in New Zealand
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.[1]
By 2004, about 15% of New Zealand businesses were retail outlets. These businesses accounted for 19% of total employment and 7.5% of 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.[1]
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]
Specialised food retailing
Sales values in the sector increased from $572.6 million in 2000 to $1.7483 billion in 2021.[8] The number of businesses increased from 2,310 to 2,982.[9] The number of employees increased from 8,000 to 11,100.[10]
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.[11] The number of businesses increased from 468 to 975.[12] The number of employees increased from 2,800 to 3,650.[13]
Metcash's Australian Liquor Marketers franchise network, based in Wiri, Auckland, includes 240 Liquor Centre and Liquor Spot franchisees and affiliates,[14][15] and 114 The Bottle-O and Merchants Liquor franchisees.[16][17][18]
Foodstuffs' franchise network includes 147 LiquorLand franchisees around the country,[19] and 16 Henry's franchisees in the central and lower South Island.[20]
Thirsty Liquor's franhise network includes 106 Thirty Liquor stores and 59 Black Bull liquor stores.[21][22]
There are also several smaller franchises. Big Barrel is a franchise of 43 stores based in Tamatea, Napier, which opened its first store in Marewa, Napier in 2003.[23] Super Liquor is a franchise of 40 stores based in Newmarket, Auckland, founded in the late 1970s in Ilam, Christchurch.[24][25] The Trusts / West Liquor is a non-profit chain of 22 stores in west Auckland established in 1971.[26] [27] Liquor King is a franchise of 19 stores based in Freemans Bay, Auckland,[28] which was established in 1995 and owned by Lion until 2021.[29]
Former liquor chains include Birds Liquorsave (1991-2005),[30] The Mill (1993-2015),[18] and Duffy & Finn's (2006-2011).[31]
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.[32]
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.[33] [34][35]
Department stores
Sales values in the sector increased from $2,556.1 million in 2000 to $5,774.6 million in 2021.[36] The number of businesses decreased from 18 to 12.[37] The number of employees has fluctuated from 18,700 to 19,700.[38]
Hardware, building and garden supplies
Home decorating
- Resene ColorShop, established in Wellington CBD in 1975, has 60 stores.[39]
- Guthrie Bowron, established in Christchurch CBD in 1932, has 50 stores.[40][41]
- ColourPlus, a franchise established in 1999 in Hastings Central, has nine stores.[42][43] This is down from 26 stores in 2016,[43] and 40 stores in 1999.[41]
Garden centres
- Palmers Garden Centre, established in Glen Eden, Auckland in 1912, has 12 stores.[44]
- Kings Plant Barn, established in Takapuna, Auckland in 1992, has eight stores all within Auckland.[45]
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.[46] The number of businesses increased from 1,485 to 1,734.[47] The number of employees has increased from 7,000 to 9,100, except for a decline following the Global Financial Crisis.[48]
Some retailer specialise in furniture, such as Nood Furniture (15 stores),[49] Freedom Furniture (14 stores),[50] and Nick Scali Furniture (five stores).[51] Harvey Norman and Smiths City sell a combination of household appliances.[52] Department store chains like The Warehouse, Farmers and Kmart also sell furniture.[53] [54][55]
Hardware, building and garden supplies
Sales values in the sector increased from $3,575.4 million in 2000 to $9,754 million in 2021.[56] The number of businesses declined from 1,542 to 1,401.[57] The number of employees increased from 13,000 to 23,800.[58]
Recreational goods retailing
Sales values in the sector increased from $1,531.8 million in 2000 to $2,858.8 million in 2021.[59] The number of businesses increased from 2,034 to 1,821.[60] The number of employees increased from 9,600 to 10,400.[61]
Sporting goods
- Rebel Sport is a chain of 41 stores, established in Panmure, Auckland in 1996.[62]
- Stirling Sports is a franchise of 60 stores, established on Dominion Road, Auckland in 1964.[63]
- JD Sports has a store at Sylvia Park, Auckland;[64] it opened in 2021.[65]
Toys
- Toy World is a franchise of 26 toy stores, including 11 in Auckland, founded in 1976.[66]
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.[67] The number of businesses increased from 2,442 to 2,865.[68] The number of employees increased from 15,000 to 21,000.[69]
Shoes
- Overland Footwear Group, established in 1948, has 63 stores branded as Merchant 1948 and Mi Piaci.[73][74]
- Accent Group, established in 1988, has 60 stores branded as Platypus,[75] Hype DC,[76] The Athlete's Foot,[77] Timberland ,[78] Dr. Martens,[79] and SUBTYPE.[80]
- Shoe Clinic is a franchise of 19 sports shoes stores.[81]
- Smith's Sports Shoes is a franchise of 14 sports shoes stores, established on Dominion Road, Auckland in 1949.[82]
- Foot Locker has 13 outlets.[83]
- NOVO Shoes have 13 outlets.[84]
- Maher Shoes has six stores.[85]
Jewellery
- Michael Hill Jeweller is a chain of 55 stores, founded in Whangārei in 1979.[86]
- Pascoes the Jewellers is a chain of 41 stores, established in 1906 in Auckland CBD.[87]
- Goldmark Jeweller is a chain of 12 stores established in 2007.[88]
- Walker & Hall is a chain 11 stores including nine in Auckland. It was established in 1899.[89]
- Partridge Jewellers is a chain of seven stores, established in Wellington CBD in 1877.[90]
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.[91] The number of businesses increased from 1,029 to 1,269.[92] The number of employees increased from 5,100 to 8,600.[93]
- Lightingplus, established in 1982 in Ponsonby, Auckland, has 33 stores, including nine in Auckland.[94]
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.[95] The number of businesses has declined from 6,423 to 5,772.[96] The number of employees increased from 19,000 to 23,600.[97]
Pharmacies
- Chemist Warehouse is a franchise of 30 discount pharmacies;[98] its first store opened in Glenfield, Auckland in 2017.[99]
- Life Pharmacy is a franchise of 65 upmarket pharmacies,[102] launched in 1995.[101][103][104]
- Health 2000 is a chain of dietary supplement stores established in 1993. It has 51 stores, including five in Auckland.[105]
Variety
- Sunny's Variety Stores is a chain of five variety stores, established in Whangamata in 1995.[106]
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 2020 to $3.8335 in the first quarter of 2021.[107] The number of businesses increased from 468 to 834.[108] The number of employees increased from 16,100 to 19,800, but continues to fluctuate each year.[109]
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.[110] Supercheap Auto opened its first stores in New Zealand in 2003 and now has 46 stores in the country.[111]
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.[112] The number of employees also halved from 12,400 to 6,200.[113]
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