Retail NZ’s newest Retail Radar survey shows that although retailers are cautiously positive about the upcoming holiday season, the majority do not intend to increase their staff.
64% of retailers do not plan to hire additional staff this Christmas. This highlights the continued challenges many businesses face, including tight profit margins, cost-of-living pressures, and muted consumer confidence affecting trading conditions.
“Retailers are walking a fine line between caution and creativity,” Retail NZ chief executive Carolyn Young said.
“While some are investing in fresh product lines and in-store experiences, many are holding off on hiring due to financial constraints. It’s a pragmatic response to a challenging environment. However, it will mean that university and college students will find it more difficult to get work over the summer holidays. And this will then impact the wider economy.”
The report points out that while two-thirds of retailers stay optimistic about the future, 62% have missed their sales targets over the past six months.
Many are responding by streamlining operations and carefully managing stock levels instead of growing their teams.
Meanwhile, 66% of respondents report feeling confident or very confident about the future, closely matching the 65% recorded during the same period in 2024.
Retail NZ urges consumers to back local businesses this Christmas and reminds retailers that its Advice Service is ready to help with staffing, performance, and compliance issues.
This service is open to both Retail NZ members and the broader retail community.