The closure of Southland's retailer H&J Smith is raising questions over how local retailers can compete against international players.

It comes as one of our biggest retailers 'Briscoe Group' has announced a record full year profit, with revenue up at $785.9 million.

Briscoes Group Managing Director Rod Duke told Mike Hosking with the likes of Ikea heading to New Zealand, local companies will have to lift their game.

He says local companies will have to offer a better product for a better price.

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