Aaron McFarlane, managing director of the Coromandel Shelly Beach Top 10 Holiday Park and co-owner of Anglers Lodge, is expecting a bumper season ahead. Photo / Supplied
Aaron McFarlane, managing director of the Coromandel Shelly Beach Top 10 Holiday Park and co-owner of Anglers Lodge, is expecting a bumper season ahead. Photo / Supplied
A new survey from business management platform MYOB has revealed how small to medium enterprises (SMEs) are feeling ahead of the festive trading period, with many seeing positive signs.
According to the findings, 26% of respondents expected their business revenue over Christmas and New Year to be higher than in2023.
Of those remaining, 47% expect their revenue to remain flat on last year, with 23% expecting to experience a decline.
MYOB chief customer officer Dean Chadwick believes many businesses are changing their strategies to maximise turnover.
“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,” Chadwick said.
“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 chief customer officer Dean Chadwick said many SMEs are adapting their sales strategies. Photo / Supplied
Respondents intended to make the most of the period, with many expecting to increase their advertising and promotions (20%), and expanding their product ranges (14%).
A further 14% intend to extend their opening hours, with 13% placing more staff to cover the increased levels of customers.
“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,” Chadwick added.
For Aaron McFarlane, managing director of the Coromandel Shelly Beach Top 10 Holiday Park, a better holiday season couldn’t come soon enough.
The Holiday Park has experienced tough times in recent years, with weather events playing a key part in keeping tourists away due to road closures and the long-awaited reopening of the Cathedral Cove track.
But the season ahead looks brighter, with McFarlane saying the park was nearly fully booked for the holiday period by September, with summer reservations sitting 30% higher than at the same time last year.
“Last year taught me that anything could change, and the impact could have a major effect on your business,” McFarlane said.
Cathedral Cove for nearly two years was only accessible by sea. Photo / 123RF
“Our business has tracked quite well this year. Visitors are still arriving for their well-earned breaks, but we have noticed that with the increased cost of living, they’ve been less likely to book any add-ons to their stay with us, such as our fishing charters or zipline tours.”
As a seasonal business, the park’s staff increases from eight to 20 over the period, but McFarlane hopes he can create more sustainable work all-year-round for locals.
Future outlook
The majority of SME owners and decision-makers are gaining confidence in New Zealand’s economic outlook, with 44% of respondents expecting the economy to improve over the next year.
However, a third (33%) of those surveyed expect the opposite, sharing a stark difference in confidence.
Just one in five expect to see no change.
That difference extends to forecasts as well, with 36% of SMEs expecting revenue to be higher in 12 months, while the majority expect their revenue to remain the same (38%) or be lower this time next year (22%).
Chadwick thinks the “ghost of inflation’s past” may still be denting business confidence.
“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,” Chadwick said.
One critical way customers can help alleviate the pressures on SMEs over the period is to pay on time.
Chadwick explained that 30% of respondents said customers would be late paying them in December in January.
“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.”
Inflation and the cost of living remain key concerns to SMEs for the year ahead, but just over a quarter (26%) intend to invest in their business to drive growth over the next year.
“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,” Chadwick said.
MYOB said it surveyed 505 owners and decision-makers nationwide from small to medium-sized businesses.
Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.
