New Zealand retail insolvencies surge 74 per cent in Q2

Retail insolvencies in New Zealand surged by 74 per cent in the second quarter, rising from 39 to 68 cases. According to BWA Insolvency, this represents the largest increase among all major industry sectors.

While total insolvency cases across the country remained relatively stable—increasing by only 3 per cent year-on-year to 760—the data suggests a shift in economic pressure. BWA Insolvency principal Bryan Williams noted that “business stress has changed address,” as financial strain moves from the construction sector to the retail sector.

Retailers are currently facing a combination of weak sales volumes and high operating costs while competing for limited consumer spending. Other sectors seeing increases in insolvency include business services, accommodation, personal services, and medical and care businesses. Conversely, insolvencies in construction, property and real estate, and transport and delivery saw declines during the quarter.