The other buyers’ market: High promotional activity is eating retail margins

Retailers are in “survival mode”, said one analyst. (Image: Alex Burton)

Mon, 25 Aug 2025

Softer-than-expected consumer sentiment is causing retailers to drop prices to move excess inventory, analysts say. Forsyth Barr analyst Paul Koraua said a common theme of recent retail disclosures is acknowledgement that promotions are required to get stock out the door, which is having knock-on effects on margins. In their most recent disclosures, KMD Brands, Hallenstein Glasson, The Warehouse Group and Briscoe Group all flagged margin contraction.Koraua said the trend was especially evident in the New Zealand market, where the list...

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