There is no denying that the pandemic’s tight grip on people’s lives over the past two years has been hard on everyone. But undoubtedly the retail and hospitality sectors has been the worst hit at this time. It comes as no surprise that many small businesses have closed in the past two years as they could not operate successfully.
Apart from the global Covid-19 pandemic, other factors have contributed to the turmoil in the retail sector in NZ, including facing increasing costs, staffing shortages, and supply issues. The increasing and alarming incidents of violence, crimes, and burglaries, along with the government's recently announced increase in the minimum wage from $20 to $21.20 from April 2022, have added to the troubles faced by the already worst-hit retail segment.
Statistics released under the OIA to the Dairy and Business Owners Group show despite Auckland being in lockdown for 107 days, reported retail thefts there, in the first 11 months of 2021, surged by some 33 percent over 2020, with reported burglaries going up almost 19 percent. There have been 1,402 extra reported thefts over 2020, which means Auckland City retailers are now reporting nearly 16 thefts a day to Police, let alone burglary and assault. Comparing 2017 and 2021, Reported retail burglary was up 7.7 percent (350 more in 2021 than 2017 at 4,876), with thefts up 33.7 percent (9,210 more than in 2017 at 36,595).
National Party’s Police spokesperson Mark Mitchell said, “ Since Labour became the Government in 2017, NZ dairies, supermarkets and liquor stores have seen a 25.7 percent increase in victimisations. Theft has skyrocketed by 32.2 percent in that time. Despite this, Police are making fewer arrests. While, in 2017, Police arrested 5,228 offenders for occurrences at dairies, supermarkets or liquor stores, in 2021, this dropped to 1,947 arrests – a massive reduction of 62.8 percent.
“New Zealanders deserve to be able to run their own business, or to shop at local businesses, without fear of being robbed or assaulted.”
Indian Weekender spoke to people from NZ's retail sector to know the issues faced by the industry
Greg Harford, Chief Executive of Retail NZ, believes that the retail sector is under enormous pressure at the moment and needs urgent support to survive. He said, “Retail sector is badly hit because of the Red Traffic Light Settings. At present, foot traffic is down, sales are down, and costs are up. The sector urgently needs support from both customers and the Government to survive the current situation.
“The Red Light is not a lockdown, and it is safe for customers to go and visit the shops. Retail NZ is calling on New Zealanders to shop local and shop normally during these times – and remember that many Kiwi retail businesses also have great websites if you can't get in-store. Retail NZ is also asking the government to step in with additional financial support for the retail sector. It's increasingly difficult for many retailers to continue operating, and many will not survive without additional help.”
The survival of small businesses is increasingly becoming difficult in the current scenario. Many small business owners are desperately trying to pay down debt they have had to take on board to survive, and the increase in the minimum wage would add to the voes.
Gurdeep Singh, President of South Auckland-based Auckland Indian Retailers Association, says, “There could not have been the worst time to announce the minimum wage increase than now when businesses are struggling to survive. We all know that the economy runs on businesses, and every member of this association, who is also a retailer, faces the same problem, but there is no solution. Our concerns are not limited to the financial crisis but also the crime rate, and abuse that we are going through is not acceptable, but it seems there is no point in voicing it out, and no one wants to do anything about it,"
New Lynn Business Association’s Manager Amelda Jeffrey says "This is a very difficult time for small business, government has announced an increase in the minimum wage and whilst people need to earn a living wage, this measure alongside inflation, recovery from lockdowns and the prices of goods constantly going up, both small local business, now is the time to work together, to support one another and for central government to look carefully at how their policies impact on daily lives of locals and small businesses.
“Currently there are no major events and large gatherings, so we have had to make other plans to support our local members. One action is implementing a Shop Local campaign, this has a strong focus on supporting local businesses who in turn support local employment and the wider community".
Marisa Bidois, Chief Executive Officer, Restaurant Association of New Zealand, reveals that the restaurant business owners report on average 30 percent losses each year. “The situation is increasingly dire for many of our business across the country. We are now into the third year of dealing with the fallout from the pandemic. Members are reporting losses on average of 30 percent year on year, with an accumulated impact on their business. We have been advocating for targeted financial assistance for the Hospitality business, which the Finance Minister is currently reviewing. We would like to see that acknowledgement channelled into financial support for struggling businesses.”
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