Business Failures Soar

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Buy NZ Made says latest figures show a bleak Xmas for many small retailers.

Company liquidations are up 40% on the same period last year and online retailers currently have the highest rate of business failure (Centrix).

Just 57% of retailers are feeling confident or very confident that their retail business will survive the next 12 months (RetailNZ).

Small business sales figures have declined for the first time in two years (Xero); andJust under 70% of New Zealand businesses think the next 12 months are going to be tougher than the last 12 months (MYOB).

A Buy NZ Made survey of small business has revealed 64% are struggling with rising costs and 30% are struggling with cashflow and inflation.

Less than half are optimistic about the Christmas period and a quarter say just staying afloat will be their focus in 2024.Buy NZ Made executive director Dane Ambler says small businesses are facing challenges far greater than those faced during covid disruptions.

“We are seeing more companies on the edge, or the last of their kind in New Zealand, he says.A lot of the small business support we saw during covid has dropped off in the past year.

Many are optimistic about what a new government will bring, but bringing down inflation won’t happen overnight.

“Many small businesses rely on the Christmas trading period to survive and thrive. NZ Made Day [November 21] is a great opportunity to show some love for small Kiwi businesses and get them through this difficult time.

“Instead of sending your money overseas via big box retailers on Black Friday, why not make the choice to support local brands in our communities this NZ Made Day?”
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