Latest / Best of Business / Chris Wilkinson: First Retail Group Managing Director on Michael Hill reporting its first positive result in over two years

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Chris Wilkinson: First Retail Group Managing Director on Michael Hill reporting its first positive result in over two years · Best of Business

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  Speaker 1: You're listening to a podcast from News talk edb follow
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  Speaker 2: We've got evidence that the recovery is here and it's real.
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  Speaker 2: Michael Hill. Jeweler has its New Zealand division posting positive
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  Speaker 2: results for the first time in two years. This is
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  Speaker 2: the for the first half or the half of year.
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  Speaker 2: Two December sales were up two point four percent. Is
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  Speaker 2: the important But there Chris Wilkinson, this first retail Group's
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  Speaker 2: managing director and is back. Well this Chris morning to you.
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  Speaker 2: Good morning, Mike, Good sign given? Am I correct and
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  Speaker 2: saying good sign given? Jewelry is generally discretionary and relies
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  Speaker 2: on that element of confidence, doesn't it.
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  Speaker 3: That's exactly right. Yes, it's very encouraging for the sector.
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  Speaker 2: And retail generally. Are you sharing in the sunshine or not? Really?
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  Speaker 3: Not quite yet. Mike's set discretionary dollar. There isn't a
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  Speaker 3: lot left once people's living costs have gone these days.
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  Speaker 2: Okay, do you see something improving this year? Is the
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  Speaker 2: recovery reel in your view?
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  Speaker 3: Yes, it is. We're seeing a lot of benefits in
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  Speaker 3: areas where these large projects are taking place. Employments looking
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  Speaker 3: good in those areas. Agricultures looking good. Provinces are looking
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  Speaker 3: particularly good in New Zealand.
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  Speaker 2: Okay, and so that will continue for the year. The
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  Speaker 2: South North thing continues as well, along with you know
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  Speaker 2: the story around dairy and rural sectors, etc.
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  Speaker 3: That's our feeling and that's the signal we're seeing. We've
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  Speaker 3: seeing stores wanting to open the provinces. We've seen investment
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  Speaker 3: decisions being made.
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  Speaker 2: Are we or I'll tell you what. One of the
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  Speaker 2: things that fascinating to me over the Christmas period was,
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  Speaker 2: there's Black Friday, the Boxing Day. We've got a bit
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  Speaker 2: disappointed on Boxing Day. Has retail materially changed. In other words,
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  Speaker 2: the money spend has been shifted. So Black Friday is
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  Speaker 2: a real thing. Therefore, you can't expect the same numbers
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  Speaker 2: we used to get in Boxing Day.
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  Speaker 3: That's right, yeah, exactly. It's very blurred these days. It
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  Speaker 3: didn't used to be as blurred when we saw the
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  Speaker 3: advent of Black Friday in New Zealand very much punctuated
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  Speaker 3: that spending season. Now it's a lot more diluted spread
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  Speaker 3: across a longer period.
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  Speaker 2: Okay, So what happens this year with the RB with
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  Speaker 2: mortgage rates and interest rates, because it seems the cuts
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  Speaker 2: are over and if we're relying on cuts, therefore more
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  Speaker 2: money in your pocket. Is that a problem for retail
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  Speaker 2: potentially or not? Or is how much of it's psychological?
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  Speaker 3: Look at its psychological. If we're seeing employment, if we're
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  Speaker 3: seeing spending in other areas, I think where we're potentially
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  Speaker 3: in for a much better year than we've seen in
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  Speaker 3: the past.
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  Speaker 2: Okay, the other observation I've made I started with hospitality.
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  Speaker 2: I'm wondering if I've got into the world of retail
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  Speaker 2: as well, are we over retailed? In other words, there
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  Speaker 2: are just too many people who don't really know what
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  Speaker 2: they're doing, and they're the people here closing the shop.
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  Speaker 2: And the people who do know what they're doing actually
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  Speaker 2: do quite well.
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  Speaker 3: You're exactly right, Mike, and Michael Hill's a perfect example
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  Speaker 3: of this. There are a business that continues to evolve,
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  Speaker 3: continues to change, and in the businesses that are struggling
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  Speaker 3: and going out of business are the ones that don't.
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  Speaker 2: Nice to talk to you. Chris, We'll catch up during
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  Speaker 2: the year. Chris Wilkinson, First Retail Group Managing Director, speaking
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  Speaker 2: of which, as regards Michael Hill. Yes, we did well here,
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  Speaker 2: thank the good Lord. Same store sales up three point
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  Speaker 2: eight percent, Canada six point two, so they're booming Australia
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  Speaker 2: two point four. That's going to be a great story
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  Speaker 2: to follow this year. Not that I wish Australia ill will,
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  Speaker 2: of course, but the general consensus is that Australia is
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  Speaker 2: not going to do GDP wise economically wise as well
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  Speaker 2: as we are this year. Open three flagship stores Michael Hill, Adelaide, Sydney, Toronto.
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  Speaker 2: Three stores closed, two of those unfortunately we're in New Zealand.
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