Supporting local: key to combating ‘zombie towns’| FEBRUARY 2025

Economic stagnation at home and an increasingly complex global political landscape have delivered to Kiwis a challenging start to 2025. For regional communities, these challenges make it more important than ever to support local businesses, shops and service providers. Keeping money circulating within local economies not only sustains small towns and regional centres, it also ensures that they remain vibrant and resilient.

Well-known Kiwi economist and financial commentator Shamubeel Eaqub spoke over a decade ago about the “zombie towns” of provincial New Zealand. Regions such as Northland were declining economically and population-wise to past their tipping point, and on track to becoming zombie towns, he said.

Our view is that the success and growth of local businesses is key to preventing this ‘zombiefication’. A thriving pool of local businesses prevents economic stagnation, effectively becoming our brain-shot – the best defence (according to Mr Google) against any zombie. 

However, increasing operational costs, competition from online retailers and economic uncertainty combine to make it difficult for many of our local small businesses to stay afloat. The best way to help is simple: choose to buy local whenever possible. Whether it’s purchasing groceries from a locally-owned store, using a regional tradie or dining at an independent café, every dollar spent locally strengthens the local economy.

Of course, local business owners must also play their part. By looking at innovative ways to cut expenses without compromising quality. By joining forces to negotiate better supplier deals. By using digital platforms (with the help of local e-commerce specialists and tech providers) to enhance visibility, streamline sales and reduce their costs of sale. By upskilling and keeping their staff up-to-date with the latest technologies and core skills. Or simply by improving operational efficiency.

How often have you, or a Kerikeri friend or neighbour, complained about the ‘Northland premium’ – the little bit of extra cost on many goods and services sold locally? 

Whether it’s the ‘delivery charge’ incurred because something isn’t stocked locally, or some other small premium levied because a Kerikeri retailer is at the very end of a long and sometimes complex supply chain, it all adds up to make life that more expensive for those of us in the regions, many of whom don’t earn as much as we would if we were working in a larger centre somewhere.

Landlords also have a part to play in recognising their role in the value chain, and in helping to ensure that it’s economically viable for local people to shop locally.

And, of course, our larger firms and arms of local and regional government can do their part by mandating the use of local suppliers wherever possible, and by making it easy for local firms to tender for this business. Crucially, by ‘local’ we mean genuinely local. Not just Auckland companies who’ve rented some space in Whangārei or Kerikeri just so they can call themselves local!

Supporting local business is not just about economics; it’s about preserving the heart of regional New Zealand. Small businesses create jobs, sponsor local sports teams and contribute to community events. If these businesses disappear, the social fabric of towns and rural areas weakens. That is why both consumers and business owners must take responsibility.

As 2025 begins, let’s make a conscious effort to keep our money where it matters most—within our communities. Whether as customers, business owners or landlords, we all have a role to play in ensuring regional New Zealand thrives.