Trade Aid to close shops, focus on wholesale business
Friday, 22 March 2024
- Trade Aid says it will progressively close its shops around the country.
It cited declining sales, and said it will focus on its wholesale business.
Trade Aid said a “substantial” number of shop staff would leave the business.
Trade Aid says it will close its retail shops “progressively” from June, and will instead focus on importing, wholesale and selling online.
Trade Aid has been operating in New Zealand for 50 years, importing and selling products made by small food and craft producers under ethical conditions.
Chief executive Paul Davenport said it was likely that several shops would close in June and through the next few months.
“We’re evaluating as we are moving forward. As it stands at the moment, it’s progressive and a substantial number [of shops to close]. Where and which stores may or may not remain is going to be evaluated real-time as we move forward.”
He said there were 24 across the country but the cost of living and decllining retail sales had put pressure on.
“We’ve ended up as we’ve evolved as an organisation to be quite a large importer of green coffee and distributors to roasters and wholesalers and supermarkets across the country, as well as food products.
“We’ve got a focus and been recognised for our 24 stores but we deal with some 1300 businesses across the country. We’ve evolved into a community of fair trade believers and whether it’s craft, chocolate or coffee we are going to be more focusing on our wholesale and import business and developing a business-to-business model.”
He said the organisation needed to be sustainable to support its overseas partners and the new focus would provide better economies of scale.
He said many of the shop staff would end up leaving the organisation. “We’ve got staff and managers in our stores who’ve been there for 25, 30, 40 years and they are true believers in the trade aid movement and they and the movement broadly are very supportive of the direction we’re taking it in.”