5 Ways Kiwi Businesses Are Preparing for the Holiday Rush

These five tips can give NZ businesses a smooth ride on the downhill run to December.

As summer holidays loom and some sectors wind down, New Zealand businesses are bracing for their busiest stretch of the year. Regardless of industry, getting holiday preparation right isn’t just smart, it’s essential.

Here are five ways savvy SMEs are setting themselves up for summer success.

1. Smart Bosses are Addressing Hiring Needs Now

Summer usually drives significant seasonal hiring across the hospitality, retail, and tourism sectors. But last month, 64% of retailers told a Retail NZ survey they did not intend to take on extra help this Christmas due to tight budgets. 

While this helps the bottom line in the immediate term, the risk of being caught short during the peak means it’s worth reassessing staffing needs now. Competition for quality casuals is traditionally fierce, so a wait-and-see approach may make it harder to find good people down the track.Some SMEs are finding creative staffing solutions by cross-training existing staff for key holiday roles.

2. Avoid Becoming Cash-Strapped in January

After the highs of the festive rush, there’s nothing worse than a January cash flow crisis. Companies can fall into a dangerous trap if they spend December’s revenue in December, but lack a solid plan for the traditional January slump. Business owners are advised to calculate their likely revenue drop for mid-January to late-February based on prior years, and earmark a cash reserve specifically for covering fixed costs during that period. It also pays to get invoicing under control early, since many customers delay payments over the holiday period. Offer early payment discounts, if possible, and follow up on overdue accounts before mid-December. 

It’s also worth considering a detailed holiday budget to account for increased inventory costs, public holiday wage premiums, marketing expenses, and a buffer for unexpected bills. Negotiate credit term extensions with major suppliers for purchases made in November and December to give yourself more breathing room.

3. Don’t let the Christmas Closedown Sneak Up On You

NZ employment law allows employers to implement one annual closedown per year, but they must give staff at least 14 days’ written notice to employees before it begins. Avoid annual leave dramas by calculating liability now. Run a final audit of all employee leave accruals – especially for staff with variable hours or irregular allowances – or risk being caught off guard in Q1. 

Good managers aren’t just thinking about the company’s finances. Christmas and New Year public holidays fall on Thursdays this year and may require careful planning and rostering.

4. December Deliveries Aren’t Only For Santa

Many suppliers close or operate at reduced capacity over Christmas and New Year, so confirm supplier schedules now and place orders early to ensure deliveries arrive before holiday closures. 

For retailers, the rise of Black Friday sales can make it tricky to forecast turnover.  While figures vary, retailers agree the American phenomenon has overtaken Boxing Day as a spending holiday, and many consumers buy early Christmas presents, affecting December sales. Review your 2024 sales trends to predict demand and maintain optimal inventory levels without over-investing in products that become excess stock in January. 

5. Automate Now or Drown in Admin Later

Manual payroll becomes a nightmare in December, with complex public holiday rules, casual staff, varying hours, and annual closedowns. Businesses that invest in automated payroll calculations and public holiday premiums can avoid fixing errors during the peak period. Modern payroll systems handle all NZ public holidays automatically, meaning correct pay runs every time without manual tweaks.

Automation can also help with marketing campaigns and customer communications. Scheduled email sequences, social media posts and loyalty program communications keep customers engaged without daily manual effort. 

For businesses handling large volumes of online orders, it pays to prepare. “Stress-test your systems now,” says Global Website and SEO Lead at Employment Hero Antonio Diaz Del Pinal. “Ensure your website can handle peak traffic without crashing, because that would cost not just sales but reputation. You can also consider implementing low-cost automation like chatbots or updated FAQ databases to handle basic customer enquiries so your staff can take care of more complex tasks.” 

With the right preparation, Kiwi businesses can not only survive but thrive in the holiday rush. Do the prep and set expectations, and you’ll finish the year with confidence, not chaos.