Leading NZ business consultancy firm BDO has recently released a guide for retail businesses, to assist in re-strategising and building resilience for future challenges. The guide aims to help businesses across three broad sections: planning, strategy, and risk minimisation.
New Zealand’s retail industry has shown itself to already be more resilient than many predicted following the initial lockdowns in 2020. This outcome is largely due to the hard work of retail owners and workers through this challenging period of history.
Moving forward into 2021 will require a new approach from a lot of these businesses, many of whom where blindsided by the total lockdown of business early last year. Even though sales fell to nearly nothing for many retailers, the economy has responded remarkably well. The Wage Subsidy and Kiwi’s general enthusiasm to support local businesses have seen things improve quickly, even with ongoing shorter lockdowns.
The guide points out that in some areas, sales have even been up between March 2020 and January 2021, thanks to increased domestic travel. Overall, the retail sector has weathered the storm much more comfortably than was expected, but BDO’s guide makes an important note: strong overall performance masks the fact that there are many retail businesses that are still struggling.
For example, businesses that cater almost exclusively to tourists have found themselves adrift without a market, while others have been unable to adapt.
The guide posits that adaptation is key. The retail businesses in NZ that have been successful through the recent upheaval are those that have been able to adapt to the changing environment, and a big part of adapting is forethought, and planning for the future.
BDO’s Retail Thrive guide offers useful tools to support the process of planning for the future to build resilience. To download a copy of the guide, visit the BDO website by clicking on the following link: https://www.bdo.nz/en-nz/retail-thrive-guide