Get the latest retailer news on the New Zealand economy and merchant business in our monthly Retailer News. Each issue covers a range of topics, including merchant service updates, credit card fraud, and economic commentary from BNZ Chief Economist Tony Alexander.
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In the latest Retailer News
April 2017, see previous articles
Tony’s Take – Economic commentary from BNZ Chief Economist Tony Alexander
There’s a school of thought which says that as the country heads into an election, the economy goes on hold. There’s certainly plenty of anecdotal evidence that some businesses will hold off committing to some capital spending as they await the election outcome, and the housing market can also flatten out slightly. But outside of this there is little to suggest that consumers change their spending patterns to any degree. Many years back the only discernible change in spending was a sudden rush on budget day by people to buy petrol, alcohol and cigarettes in case excise duties were put up – as they often were.
The fundamental factors underpinning growth in NZ household spending remain very strong. Net migration inflows at record levels above 70,000 per annum are boosting our population by over 1.5% per annum. Consumer confidence levels are above average. Jobs growth is running near 4% per annum. House prices are still rising in the regions and boosting perceived wealth, and therefore perhaps some willingness to splurge on one or two things. In Auckland and Christchurch however, prices have flattened out so to some extent this wealth effect does exist, but it will be petering away in our two biggest cities.
Tourism continues to boom and this is of great benefit to hospitality businesses. For most retailers however it is not the state of the overall economy, which is and has been the biggest determinant of success. Instead, it is encroachment on sales from online retailers who continue to expand, lack of staff and costs associated with staff churn, and managing margins in a new world where consumers can easily find alternative products when the price of something is increased.
BNZ PayClip integrates with posBoss
With all the challenges of running a hospitality business, taking payments and controlling your finances shouldn’t be a headache. That is why BNZ PayClip and hospitality point of sale company, posBoss have just integrated their software applications, to make running your business and taking payments a simple, hassle free and positive experience.
Read more in the latest Retailer News PDF 44KB April 2017
If you have any questions, or need some help, please contact our EFTPOS & Internet Merchant Sales and Services team on 0800 737 774, Option 4.
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