Briscoe Group CEO Rod Duke.
Photo: RNZ / Cole Eastham-Farrelly
The collapse of two companies in recent weeks is just the tip of the iceberg, a major retail boss says.
Kitchen Things went into receivership three weeks ago, and Smiths City has gone into voluntary administration.
On Wednesday, Briscoe Group announced an 11 percent drop in profit – to $29 million – in what it described as “challenging” conditions.
CEO Rod Duke said there was definitely more trouble to come for the sector.
“I think there are certainly some mid-size and small retailers on the edge. I think there’s no question about that,” he told Morning Report .
“It’s hard to get the suburbs out and spending and I guess that’s all to do with the cost that folks have still got and their reluctance to spend and the risk to employment and that, all the stuff that stops people spending.”
Duke acknowledged his sales were holding up, but he said that came at a cost.
“The thing is, I’m having to promote more heavily. I’m having to discount a little more heavily, which means if there’s [sic] less people shopping out there then my market share is probably improving. So the sales number, you know, I’m protecting it, and I’m pretty much getting it, but it comes at some cost.
“That’s just what happens when things get tough, a lot of folks with, you know, terrific retail formats – like I think we have – manage to survive under, you know, pretty tough conditions, but those on the edges, those on the edges just fall away.”
There had never been a tougher time to be in business in New Zealand, he said.
“I’ve been in this country since 1988 and survived quite well the GFC (global financial crisis) of 08/09 and even the Covid days – we made enough money to pay back the entire wage subsidy that was given out by the government.
“We have survived, but … this is the most difficult period I’ve experienced in New Zealand.”
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