Without assistance, businesses could cut jobs and employee hours
Retailers are calling on the New Zealand government to revive its COVID-support schemes for the sector as they plunge into a "deep financial and confidence crisis" amid the Red Alert Level in the country.
"We have asked the Government to take urgent steps to reintroduce the Wage Subsidy and the Resurgence Support Payment. Alternatively, we are keen to work with the Government and officials to create a package that can support the sector," said Retail NZ chief executive Greg Harford.
The COVID-19 Wage Subsidy Programme extended help to employers and the self-employed so they can keep paying their staff and protect jobs amid the impact of alert level changes in New Zealand. The COVID-19 Resurgence Support Payment, on the other hand, was a payment extended to businesses and organisations that saw a 30% drop in revenue due to the escalation of alert levels. Retail NZ called for the comeback of the said schemes after a recent survey from its members showed "deeply concerning results."
"Confidence has plummeted since the move to the Red Traffic Light setting and is worsening. A staggering 59% of retailers have indicated that they now may not survive the next 12 months (up from 25% in January)," said Harford.
According to the chief executive, average sales among retailers are down 32% nationally. However, one-third of its members said they are seeing sales down by 40%, while 12% of retailers said their sales are down by between 60% and 90%.
Read more: Retail NZ asks for clear guidelines on mandatory jab policies
Harford said that without government support, businesses and workers will be "significantly impacted" by the pandemic and the current Red Level status.
"Government support is urgently required in order to maintain business viability and prevent both job losses and cuts in employee hours," he added.
According to the official, 76% of retailers said they will cut down operating hours to reduce wage bill. Another 32% said they plan to make staff redundant, while another 16% said they will permanently close their doors.
"With over 27,000 business in the sector we are gravely concerned that at least a quarter are looking to close permanently," said Harford.
"We need a thriving and vibrant retail sector that has the ability to recover and rebuild in order to support New Zealand."
New Zealand is currently on the second step of its three-phase Omicron plan, where its close contact exemption scheme already in place. This seeks to alleviate the burden on the supply chains should the Omicron variant hike absenteeism due to isolations prompted by confirmed infections and close contacts.
