Lockdown 'heartbreaking': 'Some retailers won't make it'

Monday, 18 October 2021

Auckland shops are laying off staff and planning to operate reduced hours even when lockdown lifts, Retail NZ says.

Prime Minister Jacinda Ardern announced on Monday afternoon that Auckland would remain at its current alert level 3 settings for the next fortnight but that the Government would announce more support for businesses on Friday.

Retail NZ chief executive Greg Harford said the news that level 3 was to continue would be “heartbreaking” for business owners.

“While there is some limited good news today that Northland is moving to level 2 tomorrow, the brutal reality is that Auckland retail businesses continue to face uncertainty with no end in sight,” he said.

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Auckland retailers are struggling with the restrictions, Retail NZ says.

“Most retail businesses are operating with almost no revenue coming in, while fixed expenses mount up. More Government support is desperately required by businesses if they are to survive, and it is pleasing that the Government will announce a new support package on Friday. Retail NZ hopes that package will be flexible with greater support for those businesses that are suffering the most.”

He said retailers had been handed another two weeks of lockdown with no further dates or a firm plan.

Some businesses were having to close permanently, he said. Data from Centrix last week showed an increase of more than 13 per cent in Auckland business closures in September compared to the average of the same time a year earlier.

“The numbers are not massive but they are coming. People are saying ‘I’ve been taking on extra debt or taking on a second mortgage’ in some cases and they can’t see a way forward. But what we are seeing instead of business closures though is people looking to lay off staff or reduce staff hours. There’s consultation going on about restructuring and reducing job numbers.

“Retail businesses are trading well down, and online sales are simply not enough for many firms to survive. The situation is even worse for hairdressers, beauty spas and other services businesses which can’t provide services online.

“Aside from financial support, a clear commitment to dates for allowing businesses to re-open is important. Businesses, employees and customers need to be able to plan, and setting a clear date will create a sense of urgency for those still to be vaccinated,” he said.

He also called for certainty about what vaccination requests could be made of staff.

“All businesses also need certainty that they will not face a personal grievance from disgruntled workers if the implement a toolkit of measures, including vaccine or testing requirements for employees. An early announcement that this is happening will allow employers to help support the vaccination effort even more than they are now.”

He said people could find that when businesses were able to open again, they did not offer the same hours. “Some won’t make it through but what we’ve seen in other parts of the country that have moved to level 2 is they are reducing their hours, their footprints are smaller.