Latest / Best of Business / Carolyn Young: Retail NZ Chief Executive on buy now, pay later provider Laybuy entering receivership

Transcript

Carolyn Young: Retail NZ Chief Executive on buy now, pay later provider Laybuy entering receivership · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talks ed Be
• 0:12
  Speaker 1: follow this and our wide range of podcasts now on iHeartRadio.
• 0:16
  Speaker 2: Now. The managing director of the buy now, pay Later
• 0:19
  Speaker 2: service Layby I, says he's heartbroken and having to put
• 0:21
  Speaker 2: the business into receivership. Gary Rolloff founded Layby in twenty sixteen.
• 0:25
  Speaker 2: You might remember it really well in the pandemic, but
• 0:27
  Speaker 2: then the business ran into trouble recently, and all of
• 0:29
  Speaker 2: Gary's attempts to sell it have failed. Carolyn Young is
• 0:32
  Speaker 2: from Retail New Zealand and with US Now.
• 0:34
  Speaker 3: Hey, Carolyn, Charla, how are you going very well?
• 0:37
  Speaker 2: Thank you? Did you realize they were in trouble?
• 0:41
  Speaker 3: No, I hadn't heard anything up until last week. Cutting
• 0:45
  Speaker 3: into last week, there was some notifications that went out
• 0:47
  Speaker 3: to retailers.
• 0:48
  Speaker 2: What went wrong?
• 0:50
  Speaker 3: Well, I think they've kind of outlined most of it.
• 0:52
  Speaker 3: You know, they are working in a retail space where
• 0:56
  Speaker 3: you know, we are suffering with the challenges around pressure
• 1:00
  Speaker 3: on the wallet, lack of consumer confidence. You know, there's
• 1:04
  Speaker 3: arranged competition out in the marketplace, there's some consumer fraud
• 1:07
  Speaker 3: where there's issues in terms of profitability for the company,
• 1:11
  Speaker 3: and therefore those things all have an impact on where
• 1:15
  Speaker 3: or not you can make these schemes work because it's
• 1:19
  Speaker 3: a triparthide arrangement between the consumer, the retailer, and the
• 1:25
  Speaker 3: buy now, say later scheme provider.
• 1:27
  Speaker 2: Is there also just like a mood, is something souring
• 1:31
  Speaker 2: for these kinds of products, because to see Apple also
• 1:34
  Speaker 2: also shut its one down.
• 1:37
  Speaker 3: I think we are in a really difficult environment in
• 1:39
  Speaker 3: terms of retail and these are designed around retail environments,
• 1:43
  Speaker 3: So people just don't have the money in their wallet
• 1:46
  Speaker 3: and they're not prepared because you're buying on credit. It's
• 1:49
  Speaker 3: a higher rate than an ordinary credit had and it's
• 1:52
  Speaker 3: a credit transaction. So therefore, are you confident that you
• 1:56
  Speaker 3: will have your job in two or three months time
• 1:58
  Speaker 3: when you need to continue to make those payments and
• 2:00
  Speaker 3: complete those payments? Yes or no? And if the answer
• 2:03
  Speaker 3: is no, then you're probably not going to purchase the product.
• 2:05
  Speaker 3: So if you aren't buying ordinarily on your debit card
• 2:10
  Speaker 3: or if boscard or credit card, then you wouldn't be
• 2:12
  Speaker 3: buying through these mechanisms. And we're seeing continued low returns
• 2:17
  Speaker 3: in terms of retail sales and consumer confidence. So I
• 2:22
  Speaker 3: think when you look at that in that sense, just
• 2:25
  Speaker 3: they're in the market the same as everybody else in
• 2:27
  Speaker 3: there struggling in terms of that space.
• 2:29
  Speaker 2: It's a really tough times, hey, Carolyn. Thank you so much,
• 2:31
  Speaker 2: Carolyn Young, Retail New Zealand.
• 2:34
  Speaker 1: For more from News Talks ed B, listen live on
• 2:36
  Speaker 1: air or online, and keep our shows with you wherever
• 2:39
  Speaker 1: you go with our podcasts on IR Radio.