Latest / The SME Stream / 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 · The SME Stream

• 0:00
  Speaker 1: We've got evidence that the recovery is here and it's real.
• 0:02
  Speaker 1: Michael Hill. Jeweler has its New Zealand division posting positive
• 0:06
  Speaker 1: results for the first time in two years. This is
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  Speaker 1: the for the first half or the half of year.
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  Speaker 1: Two December sales were up two point four percent. Is
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  Speaker 1: the important but there. Chris Wilkinson is First Retail Group's
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  Speaker 1: managing director and is back. Well this Chris morning to you.
• 0:19
  Speaker 2: Good morning, Mike.
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  Speaker 1: Good sign given? Am I correct and saying good sign given?
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  Speaker 1: Jewelry is generally discretionary and relies on that element of confidence,
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  Speaker 1: doesn't it.
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  Speaker 2: That's exactly right. Yes, it's very encouraging for the sector.
• 0:31
  Speaker 1: And retail generally. Are you sharing in the sunshine or not? Really?
• 0:35
  Speaker 2: Not quite yet, Mike. It's set discretionary dollar. There isn't
• 0:39
  Speaker 2: a lot left once people's living costs have gone these days.
• 0:44
  Speaker 1: Okay, do you see something improving this year? Is the
• 0:46
  Speaker 1: recovery reel in your view?
• 0:49
  Speaker 2: Yes, it is. We're seeing a lot of benefits and
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  Speaker 2: areas where these large projects taking place. Employments looking good
• 0:57
  Speaker 2: in those areas, agricultures looking good. Provinces are looking particularly
• 1:02
  Speaker 2: good in New Zealand.
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  Speaker 1: Okay, and so that will continue for the year. The
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  Speaker 1: South North thing continues as well, along with you know,
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  Speaker 1: the story around dairy and rural sectors, et cetera.
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  Speaker 2: That's our feeling and that's the signal we're seeing. We've
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  Speaker 2: seeing stores wanting to open the provinces. We've seen investment
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  Speaker 2: decisions being made.
• 1:19
  Speaker 1: Are we or I'll tell you what. One of the
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  Speaker 1: things that fascinated to me over the Christmas period was,
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  Speaker 1: there's Black Friday v. Boxing Day. We've got a bit
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  Speaker 1: disappointed on Boxing Day. Has retail materially changed. In other words,
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  Speaker 1: the money spend has been shifted. So Black Friday is
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  Speaker 1: a real thing. Therefore you can't expect the same numbers
• 1:33
  Speaker 1: we used to get in Boxing Day.
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  Speaker 2: That's right, Yeah, exactly, it's very blurred these days. It
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  Speaker 2: didn't used to be as blurred when we saw the
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  Speaker 2: advent of Black Friday in New Zealand very much punctuated
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  Speaker 2: that spending season. Now it's a lot more diluted spread
• 1:49
  Speaker 2: across a longer period.
• 1:50
  Speaker 1: Okay, what happens this year with the RB with mortgage
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  Speaker 1: rates and interest rates? Because it seems the cuts are
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  Speaker 1: over and if we're relying on cuts, therefore more money
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  Speaker 1: in your pocket. Is that a problem for retail potentially
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  Speaker 1: or not? Or is how much of it's psychological?
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  Speaker 2: Look at its psychological. If we're seeing employment, if we're
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  Speaker 2: seeing spending in other areas, I think where we're potentially
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  Speaker 2: in for a much better year than we've seen in
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  Speaker 2: the past.
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  Speaker 1: Okay, the other observation I've made I started with hospitality.
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  Speaker 1: I'm wondering if I've got into the world of retail
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  Speaker 1: as well. Are we over retailed? In other words, there
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  Speaker 1: are just too many people who don't really know what
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  Speaker 1: they're doing, and they're the people here closing the shop.
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  Speaker 1: And the people who do know what they're doing actually
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  Speaker 1: do quite well.
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  Speaker 2: You're exactly right, Mike, and Michael Hill's a perfect example
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  Speaker 2: of this. They are a business that continues to evolve,
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  Speaker 2: continues to change, and in the businesses that are struggling
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  Speaker 2: and going out of business are the ones that don't.
• 2:44
  Speaker 1: Nice to talk to you. Chris, We'll catch up during
• 2:45
  Speaker 1: the year. Chris Wilkinson, First Retail Group Managing Director, speaking
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  Speaker 1: of which, as regards Michael Hill, yes, we did well here,
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  Speaker 1: thank the good Lord. Same store sales up three point
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  Speaker 1: eight percent, Canada six point two so they're booming Australia
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  Speaker 1: two point four. That's going to be a great story
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  Speaker 1: to follow this year. Not that I wish Australia ill will,
• 3:02
  Speaker 1: of course, but the general consensus is that Australia is
• 3:05
  Speaker 1: not going to do GDP wise, economically wise as well
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  Speaker 1: as we are this year. Open three flagship stores Michael Hill, Adelaide, Sydney, Toronto.
• 3:14
  Speaker 1: Three stores closed. Two of those, unfortunately, were in New Zealand.
• 3:19
  Speaker 1: For more from the Mic Asking Breakfast, listen live to
• 3:22
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• 3:25
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