Talking Shop - general business

For further information or to discuss any of these issues please contact Barry Hellberg on the NZRA freephone 0800 472 472 or email bhellberg@retail.org.nz. 

May 2012

The Retail Market Analysis 2011/2012
The latest copy of our statistical review of the New Zealand Retail Market is now available online at www.retail.org.nz/retailresearchstatistics.html. This review is written by John Albertson and is compiled largely from statistical information provided by Statistics New Zealand utilising data up until the first quarter of 2012.

Nielsen New Zealand Online Retail Report 2012
The New Zealand Online Retail Report provides the country’s only in-depth look into the nation’s online retailing – combining the wealth of data on this subject contained in Consumer and Media Insights with the online shopper behavioural patterns exposed in a Nielsen online panel survey.

The report provides a 2012 snapshot of the online ‘market space’ and includes rich historical data back to 2001. The report delivers a highly contemporary analysis of consumer e-commerce mindsets and activities across a range of products and services and includes, for the first time this year, a view on the most popular daily deal sites in New Zealand as well as an enhanced mobile commerce section. This report will arm organisations with the information required to more thoroughly understand the behaviours, profiles, and perceptions of online consumers, helping to ensure that the best online development decisions can be made.

For more information see http://nz.nielsen.com/site/documents/NielsenNewZealandOnlineRetailReportPromo2011.pdf.

National earthquake drill
A national earthquake drill is scheduled to be held in September.  The campaign, marketed as New Zealand Shakeout, aims to have one million people do a ’Drop, Cover and Hold’ drill at 9.26am on Wednesday 26 September 2012. Further information is available at www.shakeout.govt.nz.

Down lights and installation requirements
The Energy Safety Service has released an advisory concerning new installation requirements for down lights and related fittings. Further details are available at www.energysafety.govt.nz/templates/Page____46993.aspx.

Industry benchmarks
Statistics New Zealand and the Department of Inland Revenue have developed a new benchmarking tool to assist smaller businesses to assess and improve their individual performances by comparing their operations with others in the industry. Some preliminary data has been released for 16 industries including electrical services, painting and decorating services, fruit and vegetable retailing and cafés and restaurants.

Further information is available at www.ird.govt.nz/industry-benchmarks.

Christchurch retail sales
A new Christchurch retail trade indicator has been released by Statistics New Zealand which shows that retail activity is resilient after the 2010 and 2011 earthquakes. Further information is available at www.stats.govt.nz/browse_for_stats/industry_sectors/RetailTrade/chch-retail-trade-indicator-info-releases.aspx.

Environmental Risk Management Authority (EECA)
Importers and manufacturers of products covered by the Energy Efficiency (Energy Using Products) Regulations 2002, are legally required to provide information for product sales, imports and exports between 1 April 2011 and 31 March 2012 to EECA by 1 August 2012.

New product categories include external power supplies, set top boxes, close control air conditioners, building chillers and gas water heaters. Further information is available at www.eeca.govt.nz/standards-and-ratings/minimum-energy-performance-standards-and-labelling/regulatory-steps-for-importers-and-manufacturers/step4.

Knife crime
Details of the SAFE knife crime initiative launched by the Associate Minister of Justice, Hon Chester Borrows are available at www.retail.org.nz/news. We also have a limited number of hard copies of the material available on request.

Credit contracts
The Ministry of Consumer Affairs has released an exposure draft of proposed changes to the Credit Contracts and Consumer Finance Act.

New responsible lending principles will provide that lenders to consumers will:

• Exercise reasonable care and skill
• Provide the borrower with sufficient information to enable the borrower to make informed decisions, both at the time of entering into an agreement and in all subsequent dealings with the lender
• Ensure that the terms of the agreement are not unduly onerous and are expressed in a clear, concise, and intelligible manner
• Not do or say, or omit to do or say, anything that is, or is likely to be, misleading, deceptive, or confusing to the borrower
• Make reasonable inquiries as to the borrower’s financial circumstances requirements and objectives in entering into the agreement
• Be satisfied, before entering into the agreement, that the borrower can be reasonably expected to make the repayments under the agreement without suffering substantial hardship
• The agreement is otherwise appropriate for the borrower, having regard to the borrower’s circumstances, requirements and objectives
• Not charge unreasonable credit fees
• Not advertise, or permit to be advertised, agreements, products, or services in a manner that is, or is likely to be, misleading, deceptive, or confusing to borrowers generally, or, if the advertisement is aimed at a particular class of borrowers, to that class

Other changes include:

• Introducing a new Code of Responsible Lending – and allowing for lenders to be banned from the industry for non-compliance
• Requiring more timely and complete disclosure of loan terms, and extending the ‘cooling off’ period for borrowers to cancel their loan
• Obligating lenders to properly consider applications by borrowers for hardship relief, and provide reasons for their decisions
• Providing that borrowers won’t have to pay the cost of interest or fees if their lender is not a registered financial service provider

A copy of the exposure draft, explanatory information and consultation questions are available on the Ministry’s website at www.consumeraffairs.govt.nz/legislation-policy/policy-development/credit-review.

Submissions on the proposed changes are required by 25 May 2012. Prior to that, the Association will be preparing a summary paper and a draft response for members to provide input into. These will be published on our website www.retail.org.nz/submissionsandpapers.html. Additionally if you have any questions or concerns on this exposure draft, please don’t hesitate to contact Louise Evans McDonald – email levans@retail.org.nz.

Border protection against counterfeit or pirated goods
The NZRA has recently finalised an arrangement with the New Zealand Customs Service (Customs) to provide a measure of protection against imported counterfeit or pirated goods entering New Zealand.

The arrangement is an effective and workable solution to assist smaller importers/retailers to protect their brands (trademarks and copyright) against unfair and unlawful competition arising from the importation of counterfeit merchandise.

The arrangements will see the NZRA acting as agent for our members by providing the $5,000 cash security and indemnity required by Customs for the lodgement of Border Protection Notices which, under this arrangement, will cover a range of different brands from those members who wish to be a party to the arrangement. (This means that individual members do not have to pay this security bond directly themselves.)

Obviously Customs do not have the resources available to check each and every container imported into New Zealand, therefore Border Protection Notices are not an absolute guarantee of every infringing importation being detected. However, where a Customs Notice is in place and goods are identified which appear to infringe your intellectual property, Customs will hold these goods pending further investigation.

The NZRA will collect the necessary documentation from our New Zealand members who wish to be covered by this arrangement. This documentation will include a Border Protection Notice for each trademark or copyright work in which border protection is sought. A notice requests Customs to detain any goods that appear to infringe a person’s copyright/trademark which is covered by the notice. Each notice must be supported by:

• For trademarks – a copy of the IP Summary Report, downloadable from the IPONZ website, for the trade mark covered by the notice
• For copyright works – images of the work which clearly identify its characteristics or form so that it is readily identifiable to Customs officers
• Written authorisation from the offshore owner of the trademark or copyright that the importer/retailer has authorisation to act as its agent in New Zealand in matters relating to their intellectual property and the filing of notices with Customs
• Written authorisation from the importer/retailer appointing/authorising the NZRA to act as the importer/retailers agent to file relevant documentation with the NZCS requesting detention of particular goods that are infringing trademarks and copyright notices

The appropriate forms required to be completed for each of these steps are available from the NZRA.

The process will work as follows:

• Importer/retailer provides the above ‘Authorisation of Agent‘ and ‘Border Protection Notice‘ forms and sends them to Barry Hellberg of the NZRA
• The NZRA will then lodge the forms of behalf of the importer/retailer under our Group arrangement with the NZCS
• When the importer’s/retailer’s brand is identified in an inspection at the border, the following steps would be taken:
• Customs checks the importer’s goods against the border protection notice. If the goods have been imported by you, no further action is taken
• If the goods are entered by another person or company, Customs will hold the goods to determine if your intellectual property has been infringed
• If the goods appear to infringe your intellectual property then Customs will issue both the importer and yourself with a Notice of Determination to that effect and detain the goods
• If the importer agrees the suspected goods infringe your intellectual property, the importer may surrender the goods to Customs, or negotiate a settlement with you whereby the importer retains the goods, or the importer may contest the determination
• In the event the importer contests the determination, you will have 10 working days from the date of the Notice of Determination to institute legal proceedings against the importer with the Court. If you do not institute legal proceedings within this time frame, Customs will release the detained goods back to the importer. Customs may extend this period to 20 working days if it considers it appropriate to do so in all of the circumstances

Please note NZRA involvement ceases once the determination notice is issued to you by Customs. It will then be your responsibility to approach the importer and/or seek High Court action. We recommend independent legal advice to assist you in this process.

April 2012

Dumping
An update of products currently subject to anti-dumping duty is set out below:

•  Canned peaches from South Africa, Greece, China and Spain
•  Stationery from Malaysia
•  Diaries from China
•  Galvanised wire from Malaysia and South Africa
•  Paint brushes from China
•  Plasterboard from Thailand
•  Reinforcing steel bar and coil from Thailand
•  Wire nails from China

Further details are available at www.med.govt.nz/busiess/trade-tariffs/trade-remedies/imported-goods-subject-to-duty.

Knife crime
The Government’s retail knife crime initiative was launched by the Hon. Chester Burrows, Associate Minister of Justice, in Auckland on 30 March 2012.  A copy of the Minister’s press statement and the promotional brochures, posters and point of sale stickers issued to support the campaign, can be downloaded from our website.

Consumer Law Reform Bill
The Association has presented a comprehensive submission on this Bill and a copy can be downloaded from the NZRA website. We have asked to appear before the Commerce Select Committee on this issue.

Food Bill
There are still no clear timelines available for the enactment of this Bill. However, educational material is currently being developed by the Ministry of Primary Industry, including material on the retail implications of the Bill.

Retail Crime Prevention Group (RCPG)
The RCPG met in Auckland on 30 March. A presentation was given on the PWC Global Fraud Survey and a discussion was held with John Guthrie of Otago University on the content and possible funding available for a further retail crime survey. There was also discussion of the implications for the retail sector of the business plan developed by the Police Crime Partnership Prevention Forum.

2012 meetings with Government agencies
We have commenced our 2012 meeting programme with Government agencies by meeting the Ministry of Consumer affairs in late March. We expect to meet with the Commerce Commission in April.

E-waste standard
A new draft standard for e-waste has been released for public comment (AS/NZ 5377 – Collection, Storage, Transport and Treatment of Electrical and Electronic Equipment). Further information is available at www.beehive.govt.nz/release/australia-nz-joint-e-waste-standard-draft-welcomed.

If you wish to make a submission go to www.standards.org.au and click on the link for ‘Draft Standards open for public comment’.  Submissions close 15 May 2012.

Government procurement
Business New Zealand and the Ministry of Economic Development are hosting a free event for small and medium sized businesses to promote their businesses to senior Government buyers from 15 of the largest Government organisations in Wellington on 9 May 2012.

Further information is available at www.procurement.govt.nz.

The Art of Being Chosen, by Martin Butler

Martin Butler spoke at last year’s National Conference. His book, The Art of Being Chosen, explores the answer to the question, “Why does the consumer shop with you rather than one of your competitors?” Martin interviewed the heads of 100 top retailers globally to research his book. Interestingly, he’s right. Every retailer is in the business of being chosen, no matter what they actually sell.

The Association imported Martin’s book especially for NZRA members and we still have some copies available for purchase. If you are interested in purchasing a copy please email Rachael Earnshaw rearnshaw@retail.org.nz. The cost is $35 plus postage (includes GST).

March 2012

Free financial advice for Canterbury residential red zone property owners
The Commission for Financial Literacy and Retirement Income (formerly the Retirement Commission) has launched a free Financial Advice Service for Canterbury residential red zone property owners.

The Commission previously produced the Red Zone Financial Decision Guide booklet and online resources with a special red zone page on Sorted, at www.sorted.org.nz/redzone.

With residential red zone property owners facing some big financial decisions, the Christchurch Earthquake Appeal Trust has provided further funding to the Commission to set up a financial advice service to provide residential red zone property owners with access to qualified professional financial advisers for free one-on-one financial advice consultations.

Free advice will be provided by a group of experienced, local professional financial advisers (all Authorised Financial Advisers) who are donating their time and expertise.

Download the flyer from www.sorted.org.nz/redzone.

Retail statistics - December 2011 quarter
Retail sales increased by 8% in the October- December quarter compared with the same period in 2010. When motor vehicles and fuel are excluded general merchandise or core retail sales increased by 7.6%.

From an annual perspective, retail sales increased by 5.5% in the January to December 2011 year compared to the same period in 2010. When motor vehicles and fuel are excluded core sales increased by 4.8%.

For a comparative breakdown of sales by store type over the past three years see www.retail.org.nz/retailresearchstatistics.html.

The statistics for the quarter ended March 2012 are scheduled for release on 14 May 2012.

Consumer Law Reform Bill

This Bill has now received its first reading and has been referred to the Commerce Select Committee for consideration and report. Public submissions have been called for and close on 29 March 2012.

The Bill retains the Fair Trading Act and Consumers Guarantees Act but extends the provisions to embrace door-to-door selling, laybys and unsolicited goods and services.

Our original submissions on the Ministry of Consumer Affairs discussion papers on its 2010 review of consumer law are available at www.retail.org.nz. A summary of the main provisions of the Bill and commentary on issues and concerns for retailers will be available on the website shortly.

Any member feedback before 22 March is welcomed for incorporation into our submissions.

Knife crime

The formal launch of the Government’s voluntary knife crime initiative is now expected to be in March or April 2012. However, the date has yet to be determined and is likely to depend on the availability of Hon. Chester Burrows, Associate Minister of Justice.

Wellington issues
Bus Review
The Greater Wellington Regional Council has released a discussion paper relating to possible changes to Wellington bus services south of Grenada.

The proposals involve the creation of a new network covering core services, secondary services and peak only services. It is intended there will be more evening and weekend services.

From a retail perspective the proposals seem to have merit as:

• Bus services are to be reorganised within existing budget parameters
• Trolley services are to be retained
• Fleets are to be modernised with smaller buses used in fringe areas
• Congestion within the CBD should be lessened through the proposed use of routes on the Terrace and Customhouse Quay during peak hours

We therefore propose to support the conceptual plan and will file our submission by 16 March 2012. Further information is available at www.gw.govt.nz/wellington-city-bus-review.

Parking in Wellington City
We are currently involved, along with a number of other business groups, in discussions with the WCC over the availability and pricing of parking within Wellington. Current topics include residential parking, the value of car parking spaces and flexible parking fees.

Dialogue with the WCC
We have re-established an informal monthly dialogue with the WCC. If there is any issue members would like discussed please contact Barry Hellberg.

February 2012

New grant for quake-affected small businesses in Canterbury

A new grant is available to help business owners to access professional legal and accounting advice in relation to the effect of the earthquakes on their business.

The Independent Advice for Small Business grant, of up to $750, is provided by the Red Cross and is available to businesses with less than 10 employees and a genuine need for financial assistance for professional advice. See www.recovercanterbury.co.nz/news/140/new-grant-for-canterbury-businesses-welcomed.aspx for more information.

epay seeks Commerce Commission clearance to purchase Ezi-Pay

For those of our members who operate epay or Ezi-Pay to process payments for pre-pay mobile telephones, landline telephone calling cards, gift cards and vouchers, and computer software and games purchase and activation cards, you may be aware that epay New Zealand Ltd is seeking Commerce Commission clearance to purchase Ezi-Pay.

The Commission has identified a number of preliminary issues which it will seek to address before making its decision in early March. The Commission will also identify parties to seek information from to assist them in their assessment.

Additionally, they invite interested parties who wish to make a submission directly, to do so by 10 February 2012. You can read more about the preliminary issues identified by the Commission, and how to make a submission at www.comcom.govt.nz/clearances-register/detail/751.

Alternatively, please contact Louise Evans McDonald at the Association, email levans@retail.org.nz, to provide your views on the benefits / implications on this proposed acquisition.

Crime prevention

In 2012 we will continue to host quarterly meetings of our Retail Crime Prevention Group (RCPG) in Auckland. The next meeting is scheduled for 30 March 2012.

We will also attend the quarterly meetings of the Crime Partnership Prevention Forum (CPPF). The CPPF was established in 2010 between the Police and 10 major business groups to progress initiatives aimed at reducing business crime throughout New Zealand.

At its last meeting, in December 2011, the CPPF hosted the launch of the Police Stolen Vehicle Database. This initiative should help achieve reductions in reported stolen vehicles and increase the number of recovered vehicles. Further details can be downloaded at www.police.govt.nz/stolen/vehicles.

The CPPF has also developed a business plan directed towards dishonesty offending and improved communication. Shop theft is one issue intended to be progressed under the plan.

Police initiatives in 2012 will be centred on a ‘Prevention First Strategy’. This requires a greater understanding of the drivers of crime - family dysfunction, organised crime, behaviour of motorists, etc - and will necessitate changes in how the Police are organised. For example, Nationwide Neighbourhood Policing Teams will be established to target crime in at risk communities.

Also the Serious Fraud Office is coordinating a review into fraud in New Zealand. Their report is expected to be released in March 2012.

Operation SNAP

We propose to host a meeting between the Police and major electronics retailers in March to promote the SNAP project which enables consumers to record serial or other identifying numbers for various household items online as a deterrent against theft. Further information is available at www.snap.org.nz.

Any member interested in attending this proposed discussion should contact Barry Hellberg.

Retail statistics

The retail sales statistics for the October - December 2011 quarter are scheduled for release on 15 February 2012 and will be summarised in the March 2012 edition of Talking Shop.

Anecdotal reports we have received tend to support the view that Christmas 2011 was a reasonably good one for the retail sector in New Zealand and we expect a modest sales increase of around 4-5% for the quarter. This would take account of the impact of the World Cup Final in October 2011 as well as the traditional December trading pattern.

Political contacts

We have presented our brief to incoming MPs outlining basic information about the retail sector and comments on some of the major issues facing the industry during the current Parliamentary term. The brief can be downloaded at www.retail.org.nz.

We are finalising our proposed 2012 meeting schedule with Ministers, MPs and Government Agencies.

Product safety

Our next roundtable meeting with the Ministry of Consumer Affairs and the leading retailers in Auckland on various product safety issues is scheduled for 21 February 2012. Any member who would like to attend should contact Barry Hellberg.

Food Bill

Comment on the Food Bill featured heavily in the media over the holiday period. Particular concerns have been raised over the effect of the Bill on small businesses such as those running roadside stalls or operating farmers markets.

The Food Bill is essentially designed to replace the Food Act 1981 which covers all food offered for sale in New Zealand. Its main purpose is to ensure that the food people buy is safe to eat. The Food Bill aims to provide a risk-based approach to food safety while improving business certainty and minimising compliance costs.

The Food Bill is currently awaiting its second reading in Parliament having been through a formal Select Committee process. Consultation has been extensive. The New Zealand Food Safety Authority (now part of MAF) commenced public discussion groups in 2004 as part of the Domestic Food Review. Active public consultation was carried out from 2007 to 2010.

The Association has largely supported the review of food safety on the basis that we expected the standards and controls regulating food to be realistic, practical and understandable for all sectors of the industry. We were also supportive of the framework established by the Bill which provided for a mix of food control plans, national programmes as well as food guidance educational material which was particularly designed for one off events or small food activities posing minimal risk to consumers.

While we were supportive of the increased regulatory compliance powers provided for under the Bill, we considered they should be used as a matter of last resort and that special monetary provision should be established for educating the business community about the new food safety regime that would be implemented once the Bill is passed into law.

It is possible that some changes may be made to the Bill by way of a Supplementary Order Paper to reflect how it will be implemented and the likely timing for its implementation, but it is unlikely the Bill will be referred back to the Select Committee for further consideration.

For further information, including Food Safety Minister Kate Wilkinson’s response to the concerns raised relative to small traders, see www.beehive.govt.nz/release/food-bill-make-food-safer-%E2%80%93-not-restrict-small-traders. For more detail still, see www.foodsafety.govt.nz/policy-law/reform-nz-food-regulations/food-bill/.

December 2011

Retail statistics – September 2011 quarter
Retail sales increased by 6.3% in the July - September 2011 quarter compared with the same period in 2010. When motor vehicles are excluded, general merchandise or core retail sales increased by 5.6%.

From an annual perspective, retail sales increased by 3.7% in the August 2010 - September 2011 year compared to the same period in 2009 - 2010.

The statistics for the October - December 2011 quarter are scheduled for release on 15 February 2012.

Gas appliances
The Ministry of Economic Development has recently completed a review of the regime which requires certification of gas appliances sold in New Zealand from 1 July 2013. Details on the amended regime and the implications for canister appliances, are set out here.

Counterfeit goods
A comprehensive update of the recent legislative amendments involving counterfeit merchandise, together with further details of the recently concluded international negotiations on the Counterfeit Code, are set out here.

Knife crime
The formal launch of the Government’s voluntary knife crime initiative is expected in early March 2012. The purpose of the initiative is to minimise the sale and unsafe use of knives by young people.

Fraud
The Serious Fraud Office is launching a major review of the incidence of fraud in New Zealand. Some previous work has been done by both KPMG and the New Zealand Police and the issue has been discussed by both the Retail Crime Prevention Group and the Crime Partnership Prevention Forum. We will keep members informed on progress.

Children’s nightclothes
The Australasian Standards Committee reviewing the current children’s nightclothes standard is to commission market research on both sides of the Tasman. The research will target consumers and businesses to determine perceptions of the format and style of the current labels.

Ministry of Economic Development
The Ministry of Economic Development has sought our assistance to obtain retailer feedback on regulations. Specifically they are looking at “audits and inspections of different regulatory regimes that may be placing undue burdens on various business sectors, including retail”. It is likely we will undertake a membership survey to obtain feedback from SME retailers in early 2012.

Ministry of Consumer Affairs
The Ministry of Consumer Affairs has recently raised ongoing product safety concerns with us regarding blind and curtain cords, button batteries, bunk beds and BBQ lighters. Further information can accessed here.

November 2011

Counterfeit goods
The Government recently signed an International Anti-Counterfeiting Agreement aimed at curbing the growing trade in counterfeit and pirated goods. Further information is available at www.beehive.govt.nz/release/government-increases-powers-crack-down-counterfeit-goods and www.beehive.govt.nz/release/new-zealand-sign-anti-counterfeiting-trade-agreement.

Submissions
In the past month we have appeared before the Christchurch City Council to speak to our submission on the Draft Central City Recovery Plan.

We have also filed a submission on the Minister of Labour’s 2011 review of the minimum wage.

Proposed standards for computers
The Energy Efficiency and Consultation Authority (EECA) is seeking views on proposed New Zealand standards including minimum energy performance standards (MEPS) for computers, notebooks, monitors and energy labelling for monitors.

These standards are also being considered for introduction in Australia (subject to final approval by the Australian Government).

The consultation document and other information on the proposed energy efficiency measures for computers are available at www.eeca.govt.nz. The deadline for submissions on the proposed standards is 5pm on Tuesday 15 November 2011. Email your submission to regs@eeca.govt.nz.

Brief for the incoming Government
The NZRA is preparing a brief on the New Zealand retail industry outlining some significant issues for consideration by the incoming Government. This will be presented to MPs in December 2011 once the results of the November election are finalised and will be available on our website.

Accredited Immigration Programme
The Department of Labour is running a series of nationwide seminars in November for employers interested in employing migrants. The seminars will cover a range of issues including:

•  Skilled employment options – what are the policies and processes?
•  Acquiring workers from the Pacific Islands
•  Employer Accreditation – what are the benefits and processes?
•  How you can settle and retain your skilled migrant workers.

Registration details are available at www.immigration.govt.nz.

NZRA Diary and Wallplanner
Due to a number of factors the NZRA will not be producing its diary for the 2012 year. We apologise for any inconvenience that this may cause. We will be looking at options for its reintroduction in 2013.

The 2012 wallplanner has been finalised and you should have received it with your November issue of NZRetail magazine. If you have not received it, or would like additional copies, please contact Rachael Earnshaw on 0800 472 472 or email rearnshaw@retail.org.nz.