New Zealand’s SMEs are heading into the holiday season with renewed confidence, with many expecting stronger revenue than last year and preparing earlier to capture consumer spend, according to new data from MYOB.
A nationally representative survey of 544 SME owners and decision-makers found 43 percent expect revenue to rise during this year’s festive trading period compared with 2024. Another 34 percent expect sales to hold steady, while just under one in five (19 percent) anticipate a decline.
With consumer spending intentions still tight, many SMEs are taking proactive steps to boost sales. Nearly a quarter are expanding their product ranges (24 percent), extending opening hours (24 percent), or bringing on extra staff (23 percent). More than one in five (21 percent) are increasing their advertising and promotional activity to lift visibility.
MYOB Chief Customer Officer Dean Chadwick says the upbeat outlook reflects how crucial the summer trading window is for local businesses.
“As local business owners get ready to put another challenging year behind them, it’s great to see some optimism coming through around what we know is a crucial period for small and medium-sized businesses across the country,” he says.
Chadwick notes that SMEs typically start preparing four months out from the holiday season, but “this year forty percent have brought their activity forward as they try to maximise sales opportunities. The earlier launch of Black Friday sales over the past couple of weeks shows this shift.”
He says that with budgets largely unchanged on last year, businesses that “bolster their customer engagement, sharpen their market presence, and respond to evolving shopper expectations, will be more likely to secure a greater share of spend.”
More than a quarter of SMEs (26 percent) expect their peak trading to fall across Black Friday, Cyber Monday, and early December, aligning with consumer shopping intentions. Only nine percent are banking on a last-minute rush in the days before Christmas.
“It’s no coincidence that local SMEs are preparing for their highest proportion of sales or orders to come through in line with when most New Zealanders we surveyed, plan to shop,” says Chadwick.
“Sitting at the centre of our communities, they’re deeply in tune with local conditions and all hands are on deck to maximise this time to boost cashflow.”
Chadwick says business owners, like consumers, are being selective with their spending, and many hope a mix of improving weather and easing financial pressures will lift shopper sentiment.
“With financial pressures of their own, business owners, like most Kiwis, are looking to make every dollar count this holiday period, and many will be hoping the arrival of sunnier weather lifts consumer spirits and delivers a brighter festive season. Coupled with Wednesday’s 25 basis point drop in the OCR, a strong finish to the year would be the perfect gift for SMEs.”
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