1 00:00:00,000 --> 00:00:02,280 Speaker 1: We've got evidence that the recovery is here and it's real. 2 00:00:02,360 --> 00:00:06,680 Speaker 1: Michael Hill. Jeweler has its New Zealand division posting positive 3 00:00:06,720 --> 00:00:08,960 Speaker 1: results for the first time in two years. This is 4 00:00:09,000 --> 00:00:11,080 Speaker 1: the for the first half or the half of year. 5 00:00:11,119 --> 00:00:13,640 Speaker 1: Two December sales were up two point four percent. Is 6 00:00:13,680 --> 00:00:15,960 Speaker 1: the important but there. Chris Wilkinson is First Retail Group's 7 00:00:16,000 --> 00:00:18,279 Speaker 1: managing director and is back. Well this Chris morning to you. 8 00:00:19,079 --> 00:00:19,800 Speaker 2: Good morning, Mike. 9 00:00:20,000 --> 00:00:22,520 Speaker 1: Good sign given? Am I correct and saying good sign given? 10 00:00:22,560 --> 00:00:25,920 Speaker 1: Jewelry is generally discretionary and relies on that element of confidence, 11 00:00:25,920 --> 00:00:26,279 Speaker 1: doesn't it. 12 00:00:27,080 --> 00:00:30,800 Speaker 2: That's exactly right. Yes, it's very encouraging for the sector. 13 00:00:31,200 --> 00:00:34,760 Speaker 1: And retail generally. Are you sharing in the sunshine or not? Really? 14 00:00:35,680 --> 00:00:39,240 Speaker 2: Not quite yet, Mike. It's set discretionary dollar. There isn't 15 00:00:39,280 --> 00:00:43,720 Speaker 2: a lot left once people's living costs have gone these days. 16 00:00:44,040 --> 00:00:46,640 Speaker 1: Okay, do you see something improving this year? Is the 17 00:00:46,640 --> 00:00:48,280 Speaker 1: recovery reel in your view? 18 00:00:49,240 --> 00:00:52,360 Speaker 2: Yes, it is. We're seeing a lot of benefits and 19 00:00:52,520 --> 00:00:57,640 Speaker 2: areas where these large projects taking place. Employments looking good 20 00:00:57,640 --> 00:01:02,040 Speaker 2: in those areas, agricultures looking good. Provinces are looking particularly 21 00:01:02,120 --> 00:01:03,040 Speaker 2: good in New Zealand. 22 00:01:03,240 --> 00:01:05,120 Speaker 1: Okay, and so that will continue for the year. The 23 00:01:05,160 --> 00:01:07,640 Speaker 1: South North thing continues as well, along with you know, 24 00:01:07,680 --> 00:01:10,160 Speaker 1: the story around dairy and rural sectors, et cetera. 25 00:01:10,959 --> 00:01:13,880 Speaker 2: That's our feeling and that's the signal we're seeing. We've 26 00:01:13,920 --> 00:01:17,360 Speaker 2: seeing stores wanting to open the provinces. We've seen investment 27 00:01:17,400 --> 00:01:18,759 Speaker 2: decisions being made. 28 00:01:19,000 --> 00:01:20,680 Speaker 1: Are we or I'll tell you what. One of the 29 00:01:20,680 --> 00:01:22,959 Speaker 1: things that fascinated to me over the Christmas period was, 30 00:01:23,000 --> 00:01:25,160 Speaker 1: there's Black Friday v. Boxing Day. We've got a bit 31 00:01:25,160 --> 00:01:29,479 Speaker 1: disappointed on Boxing Day. Has retail materially changed. In other words, 32 00:01:29,520 --> 00:01:31,720 Speaker 1: the money spend has been shifted. So Black Friday is 33 00:01:31,720 --> 00:01:33,679 Speaker 1: a real thing. Therefore you can't expect the same numbers 34 00:01:33,720 --> 00:01:34,840 Speaker 1: we used to get in Boxing Day. 35 00:01:35,600 --> 00:01:39,000 Speaker 2: That's right, Yeah, exactly, it's very blurred these days. It 36 00:01:39,160 --> 00:01:41,360 Speaker 2: didn't used to be as blurred when we saw the 37 00:01:41,440 --> 00:01:44,600 Speaker 2: advent of Black Friday in New Zealand very much punctuated 38 00:01:44,600 --> 00:01:49,920 Speaker 2: that spending season. Now it's a lot more diluted spread 39 00:01:49,920 --> 00:01:50,880 Speaker 2: across a longer period. 40 00:01:50,960 --> 00:01:53,880 Speaker 1: Okay, what happens this year with the RB with mortgage 41 00:01:53,960 --> 00:01:57,080 Speaker 1: rates and interest rates? Because it seems the cuts are 42 00:01:57,120 --> 00:01:59,400 Speaker 1: over and if we're relying on cuts, therefore more money 43 00:01:59,440 --> 00:02:01,880 Speaker 1: in your pocket. Is that a problem for retail potentially 44 00:02:01,960 --> 00:02:03,800 Speaker 1: or not? Or is how much of it's psychological? 45 00:02:04,720 --> 00:02:08,359 Speaker 2: Look at its psychological. If we're seeing employment, if we're 46 00:02:08,400 --> 00:02:12,280 Speaker 2: seeing spending in other areas, I think where we're potentially 47 00:02:12,280 --> 00:02:14,240 Speaker 2: in for a much better year than we've seen in 48 00:02:14,240 --> 00:02:14,720 Speaker 2: the past. 49 00:02:15,000 --> 00:02:18,120 Speaker 1: Okay, the other observation I've made I started with hospitality. 50 00:02:18,160 --> 00:02:20,080 Speaker 1: I'm wondering if I've got into the world of retail 51 00:02:20,080 --> 00:02:23,520 Speaker 1: as well. Are we over retailed? In other words, there 52 00:02:23,520 --> 00:02:25,560 Speaker 1: are just too many people who don't really know what 53 00:02:25,600 --> 00:02:27,800 Speaker 1: they're doing, and they're the people here closing the shop. 54 00:02:27,800 --> 00:02:29,760 Speaker 1: And the people who do know what they're doing actually 55 00:02:29,760 --> 00:02:30,480 Speaker 1: do quite well. 56 00:02:31,480 --> 00:02:34,720 Speaker 2: You're exactly right, Mike, and Michael Hill's a perfect example 57 00:02:34,760 --> 00:02:37,400 Speaker 2: of this. They are a business that continues to evolve, 58 00:02:37,520 --> 00:02:40,600 Speaker 2: continues to change, and in the businesses that are struggling 59 00:02:40,760 --> 00:02:43,720 Speaker 2: and going out of business are the ones that don't. 60 00:02:44,040 --> 00:02:45,880 Speaker 1: Nice to talk to you. Chris, We'll catch up during 61 00:02:45,880 --> 00:02:48,600 Speaker 1: the year. Chris Wilkinson, First Retail Group Managing Director, speaking 62 00:02:48,600 --> 00:02:51,160 Speaker 1: of which, as regards Michael Hill, yes, we did well here, 63 00:02:51,680 --> 00:02:54,320 Speaker 1: thank the good Lord. Same store sales up three point 64 00:02:54,360 --> 00:02:58,080 Speaker 1: eight percent, Canada six point two so they're booming Australia 65 00:02:58,120 --> 00:02:59,799 Speaker 1: two point four. That's going to be a great story 66 00:02:59,840 --> 00:03:02,799 Speaker 1: to follow this year. Not that I wish Australia ill will, 67 00:03:02,840 --> 00:03:05,919 Speaker 1: of course, but the general consensus is that Australia is 68 00:03:05,960 --> 00:03:08,720 Speaker 1: not going to do GDP wise, economically wise as well 69 00:03:08,720 --> 00:03:14,119 Speaker 1: as we are this year. Open three flagship stores Michael Hill, Adelaide, Sydney, Toronto. 70 00:03:14,520 --> 00:03:18,480 Speaker 1: Three stores closed. Two of those, unfortunately, were in New Zealand. 71 00:03:19,000 --> 00:03:21,920 Speaker 1: For more from the Mic Asking Breakfast, listen live to 72 00:03:22,000 --> 00:03:25,080 Speaker 1: news talks. It'd be from six am weekdays, or follow 73 00:03:25,120 --> 00:03:27,000 Speaker 1: the podcast on iHeartRadio.