Local shops in price war with online retailers

Retailers are facing a constant battle to compete with online stores.

The drop in the US dollar means there are hundreds of bargains on American sites such as Amazon and eBay.

Eric Faesenkloet, chairman of leading New Zealand chain Golf Warehouse, says he has to drop prices almost every day to compete with online bargains.

"It's very difficult for retailers in New Zealand, so how we maintain our position is by our service [and] a good range of products."

Faesenkloet said he had hired a full-time worker to keep an eye on online retailers and warned consumers of hidden fees on imports, such as GST.

If the price converts to more than $400 including freight and insurance, then GST, an import transaction and biosecurity fee of $38.07 are added to the total.

Products such as clothing and jewellery may incur an extra duty fee of 5-10 per cent.

This month, the Herald on Sunday gave examples of products that were cheaper online than in Kiwi stores. In some cases, GST and other fees were not included in the total.

A Callaway Diablo Octane Driver was cheaper from the Golf Warehouse than United States site Golfsmith when fees were added.