The latest nationwide survey of 500+ SME owners and decision-makers by MYOB, highlights that 26% of those polled expect their business revenue over the Christmas and New Year period to be higher than last year, while nearly half (47%) expect their holiday season revenue to remain flat on 2023 levels. However, 23% of those polled are expecting a decline.
Emphasising why a solid trading cycle at this time is crucial for some local businesses, MYOB’s survey also showed that more than a third (37%) of Kiwi SMEs consider the Christmas and New Year period as either ‘extremely’ or ‘very’ important to their overall business’ income and revenue, while 29% rate it as ‘slightly important’. For 34%, it’s of no importance.
MYOB Chief Customer Officer, Dean Chadwick, explains that many local businesses are adapting their sales strategies as they compete for consumer spend, coming off the back of another challenging year.
“Our latest consumer survey highlighted that New Zealand shoppers are continuing to keep a tight rein on their finances, with spending intentions for the festive season remaining relatively on par with last year. With many businesses seeking to squeeze in more revenue before the year is out, increasing their appeal and driving that all important foot-traffic is top of mind,” he says.
“Nearly half of the businesses we surveyed said they would be making changes to improve sales over the holiday trading period, with an emphasis on capturing shoppers’ attention and offering more choice leading the charge in terms of tactics to get the tills ringing.”
MYOB’s survey showed that to improve sales in the run up to the festive season, SMEs are ramping up their advertising and promotions (20%), expanding their product ranges (14%), extending opening hours (14%), putting on extra staff (13%) and holding more sales (12%).
Tentative confidence and tempered performance expectations
Looking beyond the festive period to the next 12 months, economic confidence appears to be picking up amongst SME decision-makers, with 44% of those polled expecting the economy to improve over the next year, while one-in-five believe it will remain the same, and a third (33%) believe it will decline.
When it comes to expectations around their business, MYOB’s insights show there’s a mix of forecasts from local business owners. More than a third (36%) expect their revenue will be up in 12 months’ time (on current levels), however 38% expect revenue to be about the same and 22% are bracing for a drop in annual revenue.
“In terms of what may be shaping some of these predictions, our insights show that the ghost of inflation’s past, continues to haunt business confidence in New Zealand,” explains Dean. “As businesses and consumers continue to juggle higher costs, it’s no surprise that inflation and the cost of living is the biggest local factor impacting confidence around the year ahead amongst Kiwi SMEs, followed by high interest rates, fuel and transport costs, and council rates and charges.”
Helping to alleviate profitability and cashflow pressures for local SMEs over the summer period and put them on a solid footing heading into the New Year, customers are urged to pay on time.
“Around 30% of the SMEs we surveyed expect customers will be late paying them in December and January, which is concerning. Paying small businesses on time can truly ease financial pressures and cashflow stress on hardworking SME owners and operators – many of whom will be working through the summer period as others enjoy a break,” explains Dean.
While inflation concerns and the potential for improved business performance are on the radar for the year ahead, many have their attention turned to coming out of this period stronger. In fact, just over a quarter (26%) of decision-makers surveyed said that investing in growth is among their top business ambitions heading into 2025.
“With other top ambitions showing a focus on looking after themselves, including working on their work/life balance (39%), taking a holiday (28%) and paying more attention to their wellbeing (26%), we can see New Zealand’s SME owners and operators have recovery in mind, as they set themselves up to be in the best possible position to drive their business forward in the new year,” Dean adds.
ENDS
For more information, please contact:
Rosie Miller
NZ PR Specialist
E: rosie.miller@myob.com
About the research
MYOB’s survey of SMEs (with fieldwork conducted by Dynata) comprises a nationally representative sample of 505 owners and decision makers in small to medium-sized businesses in New Zealand. The survey was conducted between 18– 25 October 2024. Respondents were sampled randomly from the Dynata online panel and screened to ensure they met the qualifying criteria. Quotas were maintained on industry sector, business size/FTEs and region to ensure a reliable and diverse cross section of SME opinions were obtained.