No Quick Growth For Retail In Budget 2025
The struggling retail sector will see little immediate prospect of an uplift in consumer spending from today's Budget announcements, Retail NZ says.
'There is little in the Budget to suggest that we will see any quick improvements in consumer and business confidence,' Retail NZ Advocacy Manager Ann-Marie Johnson says.
'There will be no economic growth without retail growth. Until consumers feel confidence about their future, they will continue to be careful about spending their discretionary dollars.'
Retail NZ welcomes the Government's continued focus on combating crime, with the increased spending on policing, serious youth offenders and cutting the backlog in our courts.
The new Investment Boost, allowing a business to immediately deduct 20% of the cost of a new asset, on top of depreciation, will no doubt be of value to retailers who are looking to invest in their businesses, Ms Johnson says.
'However, only yesterday Smith + Caughey's confirmed it will close, with the loss of almost 100 jobs. This is just the latest retail business closure that we are aware of. Many more retailers will struggle to make it through the winter.
'Our members will need to continue tightening their belts in anticipation of slow sales until confidence returns to the marketplace. The light at the end of the tunnel is still a long way off.'
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