Insights into New Zealand’s retail industry

According to the New Zealand Retailers Association, each New Zealander spends roughly NZ$12,000 in shops every year – amounting to more than NZ$50 billion in annual retail sales.

Even in the face of financial difficulties, retail was able to contribute 7.5% to New Zealand’s GDP in 2009.

The retail industry employs about 20% of New Zealand’s workforce. Auckland, Waikato, Wellington, Canterbury and Otago are home to about 72% of New Zealand’s retail outlets.

Most common retail outlets

Clothes retailers comprise the largest proportion of retail outlets – supermarkets come in at a close second. Other major retail outlets include:

• Car dealers
• Hardware and Building suppliers
• Fuel retailers
• Electrical, Electronic and Gas appliance stores
• Pharmaceutical, Cosmetic and Toiletry shops.

As an investor, you’ll be interested to know there is an abundance of franchising opportunities in New Zealand. Worth over NZ$14 billion, franchising contributes a further 8-10% of New Zealand’s GDP.

Exports and sales

In terms of exports, apparel ranks amongst the highest within the retail sector. Clothing exports were valued at NZ$327 million in the year ending June 2006, NZ$1.5 million more than the previous year.

Since 2003, retail sales have grown by 5% year on year. No other sector has experienced such growth, making now an exciting time to invest in New Zealand’s retail industry.

Key Resources

We suggest looking at the following resources:

• The Retail Institute is the industry training organisation for retail and distribution
• New Zealand Retailers Association provides information and advice about the retail industry
• The Intellectual Property Office of New Zealand protects the intellectual property rights in New Zealand and administers the database of registered patents, trademarks and designs
• If you’re thinking about exporting/importing retail goods, New Zealand Customs provides you with useful information and advice
• The Ministry of Economic Development provides advice about international trade.