Spending through February is relatively strong, but the figures are masking the impact of repeated lockdowns on businesses that are "seriously hurting" across the country, according to a report by Retail New Zealand.
Spending last month was up 9.2 per cent compared to the same time last year, notwithstanding Auckland's three-day lockdown in Auckland beginning on February 14, according to the Retail Radar report.
However, while some businesses performed well, others fared poorly, with the reporting of strong average sales "mask[ing] the fact that many businesses are seriously hurting, and have not been able to pivot effectively into the new normal, or to manage lockdowns effectively," the report read.
While total spending is up 6.7 per cent since March 2020 compared to the previous year, the numbers do not reflect the impacts of the March 2021 lockdown, it read, with Auckland's new community outbreaks seeing retail sales take a serious hit.
A survey conducted during the Alert Level 3 lockdown last week saw 54 per cent of retailers report sales had fallen across the country in February, rising to 70 per cent for retailers in Auckland.
"This shows that despite the alert level changes happening for a shorter period of time than previous outbreaks, the effect on retail is significant," the report said.
Retailers have also expressed concerned about the impact of the recent Covid-19 community outbreaks in Auckland.
The most recent lockdown— which saw Auckland move to Alert Level 3 on February 28 — is expected to result in a drop in sales for 92 per cent of Auckland retailers, and 77 per cent of retailers across the country.
"Although retailers are highly adaptable, and most have shifted to new contactless methods of doing business, shopping clearly declines significantly at Alert Levels 2 and 3," it read.
Confidence that retail businesses will survive the next 12 months also fell in February, with 37 per cent reporting they are not confident or are unsure.
While confidence has rebounded strongly after the initial lockdowns between March and April last year as the country got a foothold on controlling Covid-19's spread, "as the pandemic wears on, retailer confidence is declining" with just 63 per cent of retailers stating they were confident their business will survive".
"That's compared to 78 per cent when retailers were last asked in September. This is a 15 per cent jump on the last time we asked this question back in September, and shows the dire impacts of the lockdowns on retail business confidence," Retail New Zealand chief executive Greg Harford said today.
Nearly half of all retailers also reported feeling less satisfied with the Government's handling of the Covid-19 pandemic, with 49 per cent saying they felt unsatisfied or very unsatisfied with the response, up from 37 per cent in August 2020.
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