The Level of Customer Service Is Going down hill in NZ

I asked AI and here's the lowdown

In 2025, many New Zealanders share your perception that customer service quality has declined. Current retail and business data suggest this is driven by a combination of severe labor shortages, high staff burnout, and a shift toward digital-first models that reduce human interaction
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Key Factors Behind the Decline in 2025

Critical Labor Shortages: As of late 2025, nearly 9 in 10 New Zealand businesses (87.8%) report struggling to fill roles locally. This leads to understaffed stores where existing employees are overworked and may not have the time to provide traditional, attentive service.
Burnout and Low Morale: Persistently high workloads due to staff not being replaced have led to significant burnout and decreased morale among service workers. This often translates to the "indifferent" or "rude" behavior you may be experiencing.
Shift to Digital and AI: Large corporations in NZ have increasingly moved toward "impersonal, digital-centric models" like chatbots and automated phone systems to cut costs. This has created a "customer service void" as genuine human connection becomes rarer.
Evolving Workforce Values: Generation Z (born 1997–2012) now accounts for a large portion of the workforce. Some behavioral shifts, like the "Gen Z stare" (responding to customers with a neutral stare rather than small talk), are sometimes perceived as a lack of etiquette, though some researchers suggest it reflects a different standard of professional boundaries.
Economic Pressure on Customers: 2025 has seen record-high wait times for service complaints—up 13% from previous years. Combined with cost-of-living pressures, four in five New Zealanders (81%) report having less patience with bad service than they did a year ago. 

Why "Younger" Staff May Seem Different
Lack of Training: Due to staff shortages, many young employees are being pushed into service roles without the extensive training programs that were standard in previous decades.
Preference for Digital: Research shows younger workers often prefer digital communication (text/instant messaging) over face-to-face or phone calls, which can lead to miscommunications or a perceived lack of warmth in person.
Focus on Boundaries: There is a growing trend among the younger workforce to prioritize mental well-being and clear work-life boundaries over "going the extra mile" for a company.

Comments

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  • It seems the whole work attitude is changing to retail work. I was forever grateful I had a job.
    2026 most companies plan on not increasing their workforce - most likely due to AI

  • +1

    Pushed in to service roles without training. Pretty sure when I was a teenager the training was work with someone for a couple of hours so you could ask questions then off you went on your own. Checkout training was here's how the checkout works not here is how you greet a customer.

    The big issue in most shops is I can never find any staff to ask for help. We just came from Kmart and the shop floor is rammed full of roll cages of stock so you can't get near half the aisles, but not a single member of staff in site to ask for help unloading the cages.

      • I agree with how messy the stores are.
        It never seems tidy and if you do manage to find a staff member then they don't seem to be very helpful.

      • Would they ? most feel its not cool

        • Not sure who down voted me or why, but I'm serious. Would my teenagers do it? Absolutely, they're not lazy and they're not useless. They'd be happy to earn some (to them) decent money rather than bumming around home all summer long. My two oldest have been applying for jobs all over the place since about September with no luck. Being an employer myself, I think it's because few businesses right now can afford to pay nearly $19/hour to gamble on a student who might tidy shelves all day, or might chew gum and scroll Insta/TikTok most of it.

          If they knew they would be getting ~$50/day, ~$200/week to wander around tidying shelves and sweeping the floor, yep, both they and I would be much happier for it.

          "Child labour! Exploitation!" - whatever, spare me. My son spent a whole summer volunteering full time at a local mechanic at age 15. Why? Because he wanted to be there, wanted to learn and get automotive experience. They loved having him and at the end of the summer they spent a couple of hundred dollars on a nice tool set that they gifted him for his help. That meant the world to him, and it changed his life. We need more of that in the world today, not less. More youth working and experiencing the world outside their phones and consoles, the money is nice but very much secondary.

          • +1

            @CheapAzChips: This idea of showing what your worth by volunteering somewhere to get into or try out different trades seems to be dying, its how many of us did our time to get our first quals to start making real money. Unfortunately these days the prevailing mentality is entitlement and too many people thinking the whole world exists purely for their benefit.

      • +1

        if 'youth' or anyone, are doing the same work, why should they be paid less?

        Oh, I see you're an employer. Good opportunity to fire most of your staff and just employ 'youth' until they're 18 then replace them. Your sons sound like great employees, but you have doubts about other young people.

        Maybe pay old people less, they've had a whole lifetime of working, they should give their job up. And definitely women, migrants, minorities, gays should be paid less, why not? It would certainly help an employer out. (S)

        'Money is secondary'? Says all I need to know about you. I down voted you.

        • -2

          Wow, conclusions made on a whole lot of false assumptions. No comment.

  • As someone inching closer to 30 who has done retail including commission retail I think it's very obvious that the perception of service jobs has moved a bit good lurch towards 'empathy for the worker who has to be here' from 'hey this person is here to serve me'. Imo this is on the back of a generational change in perception, probably could be from a greater percentage of customers having worked these kinds of jobs in the past etc, the shift in perception towards retail / hospo not really being a 'real' job… which is probably a product of economic and social pressure.

    There's also the appeal end of things? Gen-Z people clearly resonate with places like kmart where you dont really want / need to talk to anyone. Very few people still queue for an old fashioned checkout at the supermarket unless they've got a trolley load. Many people strongly prefer food kiosks to talking to someone. You get stores with perceived poor service because there's just noone around. It's very annoying shopping at places with overly attentive staff. I dont think younger people are as succeptable / open to being sold into a product in the way that you expect harvey norman / noels / etc to secure a large sale.

    I also feel younger people are less likely to complain, and I also feel that what I might consider good service would probably be seen as lousy service by my nana.

    The sales incentives at my old <large electronics / whiteware retailer> were cut hugely and your motivation kinda walked out the door if a customer wanted to buy a macbook or something along those lines.

  • +11

    What's up with making posts about what a LLM thinks?

    • +4

      Glad I'm not the only one who finds this post bizarre.

      • -1

        Thought it was from some article.

        This is rubbish then

    • +1

      What's up with making posts about what a LLM thinks?

      If you can't think for yourself, you have to outsource it - what other choice could there be :-)

      • +1

        Yup confirmation bias via LLMs are an issue.
        I read the google AI summary blurbs in searches but when I look at the linked sources… the summary can be questionable.

      • +1

        Tools aka Alan6984 don’t replace thinking — they extend it. Same reason we use calculators, search engines, or spellcheck.

        • -1

          Tools aka Alan6984 don’t replace thinking — they extend it. Same reason we use calculators, search engines, or spellcheck.

          Could be, but in most cases, it just replaces, and the user is oblivious.

    • -2

      I researched all the employment news and asked AI to summarize

      If you prefer the longer version here's they are. Enjoy . Come back after you have read all of them before commenting

      https://ecommercenews.co.nz/story/nzd-12-billion-at-risk-for…
      https://ecommercenews.com.au/story/poor-data-intake-drives-c…
      https://www.chrislynchmedia.com/news-items/online-florist-bl…

      NZ retailers risk NZD 12 billion in lost sales due to poor customer experiences** — research shows almost half of Kiwi shoppers will stop spending with a business after a single negative interaction, driven by communication, service delivery, and employee interaction issues.
      Poor data intake drives customer disengagement in Australia & NZ — a benchmark report finds outdated processes and poor communications leading many NZ consumers to cut off interactions with companies.
      Online florist Bloomex NZ responds to customer complaints** — after widespread negative feedback about delivery standards and service, the company has publicly addressed the issues.

      :

      Kiwibank warned for overcharging customers** — the Financial Markets Authority cautioned Kiwibank for fee misapplications affecting thousands, a case tied to poor customer treatment and communication. ([1News][4])
      ComCom takes HelloFresh NZ to court** for misleading subscription practices after many complaints about how customers were signed up and couldn’t easily cancel. ([Scoop Business][5])
      Increase in REA complaints** — the Real Estate Authority reports a rise in consumer complaints including poor communication and service from real estate professionals. ([The Real Estate Authority][6])
      Woolworths NZ contact centre strike disrupts customer support** — strike action by support staff has affected customer service availability during peak season. ([CX Today][7])

      While not news articles, these reflect public sentiment about customer service in NZ:

      NZ Post service complaints** — Trustpilot reviews show frequent delivery issues and poor responses from NZ Post. ([Trustpilot][8])
      Telecoms customer service frustrations** — social discussions highlight dissatisfaction with mobile provider support (e.g., One NZ, Spark). ([Reddit][9])

      [1]: https://ecommercenews.co.nz/story/nzd-12-billion-at-risk-for… "NZD $12 billion at risk for retailers as shoppers shun bad service"
      [2]: https://ecommercenews.com.au/story/poor-data-intake-drives-c… "Poor data intake drives customer disengagement in Australia & NZ"
      [3]: https://www.chrislynchmedia.com/news-items/online-florist-bl… "Online florist Bloomex New Zealand responds to Kiwi customer complaints"
      [4]: https://www.1news.co.nz/2025/08/06/kiwibank-warned-over-fee-… "Kiwibank warned for overcharging thousands of customers"
      [5]: https://business.scoop.co.nz/2025/03/11/comcom-takes-hellofr… "Business.Scoop » ComCom Takes HelloFresh To Court For Misleading Consumers Over Subscriptions"
      [6]: https://www.rea.govt.nz/news/media-releases/rea-reports-incr… "REA reports increase in complaints in 2024/25 challenging market conditions | The Real Estate Authority"
      [7]: https://www.cxtoday.com/contact-center/woolworths-nz-contact… "Woolworths NZ Contact Center Strike Disrupts Customer Support - CX Today"
      [8]: https://nz.trustpilot.com/review/www.nzpost.co.nz?utm_source… "New Zealand Post Reviews | Read Customer Service Reviews of www.nzpost.co.nz"
      [9]: https://www.reddit.com//r/auckland/comments/1o9fpzl/one_new_… "One New Zealand sucks."

      https://www.newstalkzb.co.nz/news/national/revealed-nz-secto…

      https://www.newstalkzb.co.nz/on-air/mike-hosking-breakfast/o…

      • -1

        Rang Briscoes, employee did not know what a 14 day price guarantee was, asked to be transferred she hung up
        Asked for some help with line trimmer at Bunnings- 20 year old turns up said he knew all these things
        proceeded to fit it for me and cut the line trimmer after rounding 7 loops- didnt know spool and check for directional arrows or letters on both the spool and the trimmer head housing.
        AMI insurance- they never call you back or follow up. Their website sucks
        ACC- they act like they are in charge to make decisions on the spot not actual policy . wait time 1 hr plus and then when you finally get answered, they adjust their microphone and cut you off - ah
        Genesis energy -
        Les mills - offers discounts to new members they churn like crazy , staff don't care about long term members (some 25+ years ) wanting to membership on hold after they have longer medical issues.

        • Unfortunately AMI, ACC and Les Mills are not specifically poor service, their service is working exactly as designed.

      • Come back after you have read all of them before commenting

        Perhaps you could get an AI to summarise it for you, and then provide some feedback on 'your thoughts' ;-)

  • +4

    Since Ive been working min wage has gone from approx $6 to almost $24 . Seems alot ?
    Cost of a house has gone from $50k to over $1million .
    Now so many people cant afford rent , people dont go to the dentist/doctor because of costs . When i started working almost no one was complaining about the high cost of food.

    So why would the younger generation give a damn about their min wage job, especially when the risk of being laid off is so real . Job for life is now a fantasy

    Employers will overwork their staff rather than get enough people to do the job . A real issue where i work , staff are just run into the ground.
    Retail margins have plummeted , even The Warehouse are running at a loss. Why hire staff when its easier not to .

    There is no brand loyalty ,so customer service really doesnt matter as we just go to whoever sells it the cheapest.

    • min wage has gone from approx $6 to almost $24 . Seems alot ?
      Cost of a house has gone from $50k to over $1million .

      What year was that (when minimum wage $6 and median house prices were $50,000?)

      I am guessing forty years or more, but my memory doesn't go quite that far back…. just yet :-)

      • +1

        Looks like 1994 for around $6 min adult wage.

        https://www.stuff.co.nz/money/350599471/a-brief-history-of-t…

        • Looks like 1994 for around $6 min adult wage.

          Median house prices were nowhere near $50,000 in 1994 though - probably at least double that, and maybe more.

          For $50,000 I suspect you'd have to be back into the 1980s somewhere.

      • In 1993, I worked for $4 an hour at New World in Chch on youth rates. From AI, a specific example of an 1993 Chch house listing is $89,000 for a four-bedroom home.

  • +4

    Was looking for something at The Warehouse the other day, their website said it was in stock and the staff member I asked said there was 2 in their system but no shelf location, I ended up with all available staff scouring the store looking for far longer than seemed reasonable and it was the security guard who found them on top of a shelf with her cameras.

    Customer service isn't completely dead, it sometimes turns up when least expected.

    • +3

      My annoyance with this that comes up a lot of the seemingly useless stock control systems. I've lost count of how often I go to get something from a shop that is "in stock" and then no one can find it.

      Just this morning I ordered the label maker from pb tech and low and behold they can't find it. Luckily good customer service has won out and I called and said if you can't find the right colour just sub it out for I've got have before you sell the last one of the other colour and that is exactly what the guys done for me so I get something rather than nothing, but the stick checker is the issue showing there's one when there isn't.

      Opposite issue was we've had 3 Kmart orders cancelled this week because the in stock items aren't actually in stock or they've sold from the shelf before the store bothered to pick them.

    • And having known more than a few people who worked.there - they were probably there intentionally.

      Staff put stuff on the top shelf so they can buy it later all the time. It's well known enought to be the topic of discussion.

  • When I first started working in 2000's it was 3 months in training with shadowing, then slowly become one month with shadowing, then 1 week no shadowing, just basic ass e-modules.
    I would not be surprised if there will be 0 training in 5yrs with most jobs and everyone just told to watch basic ass AI videos and complete modules. That some 3rd party company made.

    (the ass is intentional coz thats the level of care the companies will put in)

    • +1

      Supermarket in my small home town required years to go on self service, most of their supervisors are a decade into their supermarket career.

      Worked at a supermarket in chch and being 20 and not an idiot was the threshold for becoming a supervisor and moving on up.
      But the average tenure at the chch store is probably less than 2y

  • All the call centres ive dealt with have late have been offshore and bad english.

    • +4

      All the call centres ive dealt with have late have been offshore and bad english.

      Oh the irony :-)

      • rofl brilliant Alan

    • +3

      that's unpossible

      • +2

        that's unpossible

        Please, no! It should be:

        That's unpossible.

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