According to a recent report by NZ Post, Kiwiland saw over NZ$2.2 billion in online spending in the first quarter of 2022, up 31% on pcp and a massive 86% growth over the same period in 2020.
The figures suggest that online spending has more than doubled in those three years, reflecting a seismic shift that digital shopping has gone through during the COVID-19 pandemic. Additionally, Omicron’s rapid spread and strict isolation criteria have led to an increase in online shopping.
The reports also reveal that the three fastest growing sectors for online spending are household goods, appliances and electronics, followed by health and beauty, and clothing and footwear.
In this context, let’s take a look at the two NZX-listed retail stocks: The Warehouse Group Limited (NZX:WHS) and Michael Hill International Limited (NZX:MHJ).
Source: © Nitsuki | Megapixl.com
The limited warehouse group (NZX: WHS)
The Warehouse Group Limited is one of New Zealand’s largest retail brands, selling a wide range of food and non-food products. Last month, WHS announced that its manager, Will Easton, had asked to leave the group.
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Additionally, despite disruptions due to the COVID-19 pandemic, The Warehouse Group’s online sales continued to grow in FY22 Q3 to reach NZ$86.6 million, with an increase of 7.4% compared to pcp. Additionally, during this period, the Group’s year-to-date online sales jumped 50.2% to NZ$422.2 million compared to fiscal year 2021, demonstrating thus the adaptability of its business model under uncertain conditions.
At the time of writing on June 7, WHS was down 1.46% at NZ$3,380.
Michael Hill International Limited (NZX:MHJ; ASX: MHJ)
Michael Hill International Limited is the country’s well-known retail jewelry chain operator. Recently, she had revealed that she had sold her Canadian receivables to a Canadian-based consumer credit provider, Flexiti, i.e. the latter will now offer third-party consumer credit to all Canadian-based MHJ stores. .
This move will strengthen MHJ’s balance sheet and cash position, as well as help it expand and improve its Canadian offering.
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Additionally, MHJ, in its third quarter business update ending March 27, 2022, shared that year-to-date digital sales surged 31%, supported by expansion opportunities in many new territories and disciplined working capital management.
At the time of writing on June 7, MHJ was down 1.79% at NZ$1,100.
Despite headwinds such as Omicron-induced lockdowns, declining foot traffic and staffing shortages, New Zealand retail stocks remained resilient and saw strong growth.