The Westpac McDermott Miller Confidence survey reveals a significant drop in consumer confidence, falling 11 points to 82.2 in June, erasing the past six months of gains.
The decline signifies widespread pessimism among households about the economy, leading to cautious spending primarily focused on essentials.
Retailers are experiencing some of the toughest conditions in recent memory, with sales, margins, and profits all taking a hit. The downturn has prompted major retail players like The Warehouse Group to restructure, focusing on basic items and streamlining management to adapt to the changing consumer landscape.
Legacy media reported business leaders across New Zealand, including those from Retail NZ and Business Central, highlight the severe impact on local businesses, with many retailers closing down due to rising costs and reduced consumer spending.
Inflation, high interest rates, and lingering costs from the Covid era are exacerbating the situation, creating a tough environment for businesses to navigate.
Image credit: Lucrezia Carnelos
Unfortunately its going to get ugly
Labour incompetence and gross mismanagement of the economy coupled with it’s failed covid response and unfolding world events has left NZ in a highly vulnerable and fragile position
The prospect of a major world war or greater regional wars is escalating by the day
https://dailyreckoning.com/next-middle-east-war-imminent/
https://www.zerohedge.com/geopolitical/idf-leaders-approve-battle-plans-lebanon-offensive
The COVID response didn’t fail; everything went just as planned.
I have another idea about what is really going on, and it is not mutually exclusive but complementary to the theme of the article:
As people we are used to pleasing ourselves by buying “stuff”, some of which we do not need but only think that we want. Over the past few years, we have seen the death and destruction and coercion brought by the agenda. We feel sick inside and realize that endlessly buying “stuff” no longer makes us happy. We have realized that the only important things are our friends and family and quality of life and having real freedoms.
In other words, our consciousness has grown, and we are now much less likely to be manipulated by consumerism in order to keep us in a false sense of happiness.
Well said. Materialism is not the answer. (to a meaningful and fulfilling life).
Haven’t set foot in Warehouse since they revealed themselves to be covid/vaccine nazis. Won’t be going back any time soon, if ever.
As for the rest of them, if they’d stop putting their prices up well above inflation and then blaming it on inflation that’d be great. Also maybe get your marketing departments to tone down the overt homosexuality and communism, I just want a loaf of bread and some barbecue tongs.
I concur with your idea Mark.
In our home during the Covid lockdowns we did a massive clean out. Bags and bags of shredding of old documents and almost a Marie Kondo ‘spark joy’ exercise on every room, drawer etc. The one day jobs finally got attention.
We reduced our bedroom suite by 2 sets of drawers. We gained cupboard , pantry, garage space etc.
We found the items we had retained were more than sufficient. That was nearly four years ago and yet the spaces remain empty and sparse and we have enjoyed it. Some of our favourite stores have now closed and our spending needs have moved into a replacement only position (when needed). We will shop, but generally only through necessity as opposed to want.
There are far more pressing and important issues to now consider and financially this exercise has resulted (by default) beneficial to our family. The local Hospice stores also benefitted greatly.
Therein lies positive aspects from the darkness of Covid.
No one is spending money at the mo