Supermarkets in New Zealand

PROSPECTS

Players continue to appeal to consumers through price promotions

Over the forecast period, price discounting will continue to play a key role in driving sales in supermarkets. Many consumers in New Zealand are price-conscious, and prefer to stock up on grocery items during promotions.

Online sales become increasingly important to supermarkets

The contribution of online grocery shopping to the sales of supermarkets is expected to increase over the forecast period, with growth driven by a shift in consumer priorities. A growing number of consumers are placing greater value on convenience; as such, they demand flexibility when making grocery purchases.

Players in supermarkets introduce new payment options

Players in supermarkets are offering new payment options to meet the demands of new consumer segments. In September 2018, for example, well-established supermarket brand Countdown began accepting payments made using UnionPay pre-paid, debit and credit cards, as well as UnionPay QuickPass – UnionPay’s contactless payment service available with UnionPay chip cards, mobile phones and wearable devices.

COMPETITIVE LANDSCAPE

Woolworths (New Zealand) leads supermarkets

In 2018, Woolworths (New Zealand) remained the leading player in supermarkets in value terms – ahead of other key players, such as Foodstuffs (North Island) and Foodstuffs (South Island). The company’s lead in the channel is due to the strength of its supermarket brands Countdown, SuperValue and Fresh Choice.

The supermarkets channel remains consolidated in 2018

In 2018, the supermarkets channel continued to be highly consolidated, with leading brand owners Woolworths (New Zealand), Foodstuffs (North Island) and Foodstuffs (South Island) accounting for most value sales. In order to ensure sustainable growth in this highly competitive channel, brand owners are expected to focus on developing customer loyalty.

Supermarkets launch apps to improve the customer experience

In November 2017, leading supermarket brand Countdown launched a new mobile app which not only alerts shoppers when their online grocery order is ready for pick-up, but also lets the store know when a customer is arriving to pick up their groceries, with an alert when they are within a 400m radius of the selected Countdown store. The app improves the overall shopping experience by ensuring that pick-ups are quick and convenient.

Files are delivered directly into your account within a few minutes of purchase.