Supermarkets adapt to Kiwis’ changing shopping habits

August 13, 2015

Supermarkets adapt to Kiwis’ changing shopping habits

Layouts, locations, and the Lidl model are just a few items that supermarkets have on their list for keeping up with changing shopping habits. Photo: freeimages.com

Supermarkets have changed layouts, fought for prime locations, and adapted to Kiwis opting to shop more frequently over the past 30 years, according to industry experts.

The changing supermarket shopping habits of Kiwis have been highlighted this week, with local retailer Pak ‘N Save celebrating its 30th birthday.

Foodstuffs’ no-frills chain first opened its doors in Kaitaia in 1985, and now has 51 owner-operated stores across the country.

National Retail Marketing Manager for Pak ‘N Save Zena Ali said while staff no longer have to mark-up specials with pens like they did in the early days, they still have to find ways to keep prices low and the stores efficient in a changing market.

“One of the biggest trends that we’ve seen is there’s been an increase in frequency of shop [sic],” said Ms Ali.

“Essentially, 30 years ago you’d have done one big shop and that would last you… but people are consuming more fresh produce, there’s more scratch cooking, and people are more time-poor.”

Ms Ali said trends like these have prompted a change in layout in some stores, with cut-throughs introduced between the produce section and checkouts, allowing customers to skip the traditional store flow.

Former NBR Food Industry Week editor Nevil Gibson said Pak ‘N Save’s approach was largely influenced by American models such as Costco and Walmart, but had challenges in introducing further competition into the small New Zealand market.

“The idea was to have a no-frills thing where you could see all the stuff stacked up,” said Mr Gibson of the early days of the new stores.

“It was limited to quite an extent by whether the owners, or potential owners, could raise the amount of money needed. It costs about $30 million to build a supermarket these days, so it’s a lot of money.”

Mr Gibson said the two major supermarket chains in New Zealand, Progressive and Foodstuffs, contend with resource management, land access and set-up costs, and have to continue to put the squeeze on suppliers to keep costs down.

But in supermarkets, Mr Gibson said, it’s really about location.

While Kiwis want the best deals, the closest supermarket is often the winner, sparking long battles for large sites that can house not only the store, but provide adequate parking.

As for what’s next in the supermarket scene, supplier costs can make it difficult for new models to compete with the big players.

“A small model, the Lidl model, of very limited shelf space and size, which looks like a convenient store but is ultra low price, has not been tested in New Zealand yet but it could be,” said Mr Gibson.

Related Stories

Kiwis urged to get behind Amnesty’s petition on Ukraine

Kiwis urged to get behind Amnesty’s petition on Ukraine

Nandita Prasad March 25, 2022

She's NZ's first transgender beauty pageant contestant

She's NZ's first transgender beauty pageant contestant

Cameo Turner May 19, 2020

The climate revolution

The climate revolution

Hannah Williams March 14, 2019

Call for Gaza ceasefire boosted by Auckland's International Women's Day

Call for Gaza ceasefire boosted by Auckland's International Women's Day

Grace Symmans March 28, 2024

Rugby numbers continue to kick on

Rugby numbers continue to kick on

Matt Bullock March 26, 2024

Circus skills unite communities in East Auckland

Circus skills unite communities in East Auckland

Fravash Irani March 26, 2024