The Dairy and Business Owners Group Chairperson, Sunny Kaushal, stated that between February to October 2022, there were a confirmed 18 retail burglaries every day over 272 days.
This has added up to 4,906 retail victimisations for retail burglary. Kaushal continued that according to Parliamentary questions the organisation had examined, there had been a 39 percent increase in retail crime from 2018 to 2022, with 8 out of 10 police districts reporting a doubling of incidents.
"In 2022, we know retailers suffered 292 incidents every single day," said Kaushal.
This included a 551 percent increase in ramraids, totalling 800 in 2022.
"We take issue with reports of ramraids being down. That's only reached by directly comparing the worst month (last August) with the best month (this February). Given things in April and so far in May in Christchurch, regular crime has resumed."
Furthermore, The Dairy and Business Owners Group knows that 75 percent of crime is not reported, which Kaushal added was understandable for small businesses as police are stretched.
The Dairy and Business Owners Group presented to the Justice Select Committee on the 4th of May to call for the Crimes Act to be amended to make parents responsible for children under 18, adding a parental duty. Secondly, they wanted dedicated youth detention facilities, with Act announcing that after they had presented.
Furthermore, the Group also wanted to examine why respect for private property has broken down.
Kaushal stated that the murder of Arun Kumar 2014 by youth and Janak Patel last year had led the organisation to warn MPs that they didn't want blood on their hands. With a few close calls and recent crimes, Kaushal feared that the industry could see another death.
Crime and the impending loss of smoked tobacco were the two most significant changes in the sector last year, Kaushal added that each was two sides of the same coin.
"Our lobbying successfully widened the crime fund, which was a big win, but there are over 290 stores that qualify but have no installation date."
The chairperson critiqued the government as being run by theorists who do not talk to the organisations in trade, instead preferring academics, which Kaushal explained was a concern for the industry.
The industry was looking to incorporate new dairy products to sell to the general public to adapt and manage these changes.
Tobacco remains to be the most effective product for dairy and business owners. According to the industry's business data, it accounts for approximately half of all sales. However, vaping has become a critical factor in transactions.
While there has been a significant shift to vaping, Kaushal stated that the uptake rate has slowed, with cigarette smokers being resistant to e-cigarettes. This hesitation was why the chairperson believed smokeless tobacco vapes could be a bridging product, but more was needed.
"We're talking to suppliers here and abroad to see what options dairies could have to offer customers relevant products to get them, people, through the front door. That's half the battle with 330,000 plus daily smokers and a looming reduction in thousands of cigarette outlets to just 600."
Kaushal continued that the organisation believed dairies should have access to smoking cessation training to allow businesses to speak frankly and openly with cigarette smokers about vaping options.
New Zealand's smoking rate is 21 percent lower than Australia, which recently doubled down on a failed prescription policy launched in late 2020.
"What's been announced is a repeat of the last policy that saw Aussie smoking rates stall but illegal vaping explode."
As New Zealand's daily smoking rate is now eight percent, with 154,000 quitting in the two years since vaping was legalised, Kaushal said dairies needed to evolve. Still, he was frustrated that academics and policy writers ignored the sector's role.
"Where do smokers buy cigarettes from? The same place they get their vapes from now. You'd think we'd get some recognition. The exception is the ASH people who understand that and suggest we should have limited access to vape flavours. That's what is needed to hit 2025."
In India recently, which has banned vaping completely, Kaushal shared that vapes were visible and not hard to get.
"Then again, India is the second largest cigarette market on earth which might be another reason to ban vaping."
The organisation knows that new rules will be released from mid-this year, calling for applications to reduce 'smoked tobacco outlets' by 90 percent. Kaushal anticipated that not many dairies would secure licenses by next July.
However, Kaushal explained that the industry is confident that licensing will become a legal 'all you can bill' buffet for lawyers. They anticipate many legal challenges, with each license likely to generate around $4 million in sales. These challenges may see licensing implode.
Then, from April 2025, only low-nicotine tobacco may be sold by 600 outlets. The gangs would move into a shortage of outlets and a lack of tobacco with gusto. Given 178,000 New Zealanders (4.2 percent) smoke illegal cannabis illegal weekly and, more likely, daily, Kaushal emphasised that the academic approach was not suitable.
Kaushal used this example to explain that the supply of tobacco will not be a concern given its legal to grow and make up to five kilograms for personal consumption. Kaushal added it was much easier to grow than cannabis.
"The smoke-free reforms are a crime issue and not health. It's billions for the gangs."
When discussing other products of interest to consumers, Kaushal revealed a substantial opportunity for ready-to-eat and easy-prep meals. Goodman Fielder will be exiting the market for pies which Kaushal shared the industry was saddened to see, with the question of what Goodman Fielder will do with its recalled pie warmers.
Consumer behaviour has returned to normal following the pandemic, except for price. The industry has noticed the cost of living is causing a pinch for businesses and consumers.
Secondly, Kaushal noted the growth in delivery services, such as Uber Eats working closely with dairies to deliver staple items.
"While useful, it is margin eating for dairies but illustrates how consumers rate convenience and are prepared to spend more."
Sustainability has not impacted the range that dairies and other convenience retailers carry. Kaushal explained that consumers buy products based on price and quality, and choices based on sustainability only follow if the other two points are fulfilled.
"Is it cheap, and is it good."
This is not because the industry didn't care about sustainability, but that dairy and business owners did not have the scale to push sustainability practices, nor was it a feature consumers were looking for or expected.
Plant-based trends have reached some stores and have a potential niche, but not to a great extent, given the limited shelf space available in dairies and convenience stores.
"Every centimetre counts in-store, but it's not our market."
Finally, the organisation has remained persistent in its advocacy and support of affected convenience stores, corner dairies, bottle stores and service stations following the announcement of wholesale regulation.
The Dairy and Business Owners Group is proactively developing possible solutions to save small businesses nationwide.
Furthermore, a dairy wholesaler named the National Retail Group has been formed, with Kaushal commenting that Woolworths had been more proactive than Foodstuffs.
At present, Kaushal could not reveal more about how the organisation is managing these changes, only sharing that there was much happening behind the scene that he hoped to share next month. However, moving forward, he stated that much of the changes depended on the supermarket regulation, with legislation still before parliament.
"But, we're optimistic there will be real change."
