Latest / Early Edition with Ryan Bridge / Carolyn Young: Retail NZ CEO on card spend data dropping by 1.3% in April

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Carolyn Young: Retail NZ CEO on card spend data dropping by 1.3% in April · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: Down but not out. We've got retail cards spinning data
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  Speaker 1: out down one point three percent for April. That's despite
• 0:05
  Speaker 1: the petrol prices going up thirteen percent for the month.
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  Speaker 1: Core spending so you take out your fuel, you take
• 0:10
  Speaker 1: out your vehicles, that was also down one point three
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  Speaker 1: percent month on month for April, following a point three
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  Speaker 1: percent decline for March. Consumables down two point one percent
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  Speaker 1: following a one point four lift in March, which might
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  Speaker 1: tell you that there were some inflated purchases being brought
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  Speaker 1: forward because people were worried about the higher prices or
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  Speaker 1: supply because of the war. Carolyn Young, retail and edco
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  Speaker 1: with me this morning. Carolyn, good morning. What a bad
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  Speaker 1: result or good result given the circumstances.
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  Speaker 2: I think it's mixed pretty much what you said. You know,
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  Speaker 2: when you look at a year on year non inflation
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  Speaker 2: adjusted figures, because retailers, they are not dealing an inflation
• 0:52
  Speaker 2: adjusted times right or sorry, inflation, I mean seasonally adjusted.
• 0:56
  Speaker 2: My brain's not working this morning. We look at the actuals,
• 1:00
  Speaker 2: you know, you see their consumbles were at one point
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  Speaker 2: seven percent on actual, which is the lowest rate we've
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  Speaker 2: seen in quite some time. So it does indicate that
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  Speaker 2: people are probably making good choices in supermarkets and potentially
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  Speaker 2: buying lower brand values, you know, own brand items, those
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  Speaker 2: sorts of things that still spending but with caution, I
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  Speaker 2: guess is probably how we'd see it.
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  Speaker 1: What how are retailers responding to that.
• 1:29
  Speaker 2: Look? Retailers are pretty cautious at the moment, though. The
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  Speaker 2: difference for a retailers perspective is that their margins are
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  Speaker 2: being squeezed because obviously, you know, the cost of freighters,
• 1:40
  Speaker 2: at the cost of getting your rubbish collected, is, at
• 1:43
  Speaker 2: the cost of your recycling is up, you know, a
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  Speaker 2: whole lot of costs. They are being borne by retailers
• 1:50
  Speaker 2: that where they haven't increased prices, So margins are being squeezed,
• 1:54
  Speaker 2: which makes cash flow tight and it makes payments difficult.
• 1:57
  Speaker 1: Are these letters still arriving? My deary owner tells me
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  Speaker 1: every day that I go in there, tells me I'm
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  Speaker 1: getting a letter a day from Supplies saying we're putting
• 2:05
  Speaker 1: a surcharge on a search. Have these slowed down now
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  Speaker 1: or are they still happening?
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  Speaker 2: Well, most people will have received most, but there are
• 2:15
  Speaker 2: still some that are floating in and that just makes it.
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  Speaker 2: It does feel, as your local dairy owners said, it
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  Speaker 2: feels quite overwhelming when you just continue to see these
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  Speaker 2: day out to day. So it's quite troubling and I
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  Speaker 2: guess that's where the margin squeeze is going to come.
• 2:33
  Speaker 1: Carolyn Young, Retailing Z, Nice to have you on the
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  Speaker 1: show this morning. For more from Early Edition with Ryan Bridge,
• 2:39
  Speaker 1: listen live to News Talks it'd be from five am weekdays,
• 2:42
  Speaker 1: or follow the podcast on iHeartRadio.