By: xtr365705@xtra.co.nz
22/09/2009
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Another underarm move by an Aussie owned co in New Zealand. For some time now it has been ramping up the prices of products in its Countdown stores [supposed to the the co competitor against Pak N Save]to near that of its other Foodtown/Woolworths supermarkets; and having nearly achieved that they now intend to rename the latter as Countdowns. Whatever hsappened to the competition Progressive promised against the likes of Foodstuffs and Pak n Save/New World. It's a con.
A recent survey, with results published in the NZ Herald, showed a weekly shop at Pak n Save was $25 cheaper than Foodtown and just under $20 cheaper than Countdown. This proved that Foodtown, Woolworths and Countdown were operating with similar pricing structures and that Pak N Svve was way out there on its own offering the better prices. I'd also say that Pak N SAve and New World are NEW ZEALAND OWNED. |
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By: darkshark83
22/09/2009
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Easy answer Xtr - shop at Pak 'n' Save.
Personaly I prefer the local Woolies - just a nicer place to be compared to the spartan conrete floored Pak 'n' Save, and I'm happy to pay for that. Each to their own. |
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By: xtr365705@xtra.co.nz
22/09/2009
9:43 am Yahoo! Profile:
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darkshark; The point I make is that your 'Woolies' is going to be renamed a Countdown and the prices you pay will not be those that were originally designated as the 'lower end' Countdown price regime. You'll get the basic CD service[which was developed to be like Pak n Save] but the higher end of the pricing. Watch for a cheap Oz produce and fresh foods and watch the prices stay high. Noted how Prog. got rid of packers and got the operators do scan/pack ?
And I already shop at Pak N Save because I only look at the stock, not the floors [as clean as they always are]. Have never thought a $4.85 loaf of Vogels from Progressive was any different than the $4.25 loaf from Pak n Save. Wonder what the floor has to do with the price.
Enjoy the change. |
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By: vrybored37
22/09/2009
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| I go for New World because they are NZ owned and I really need someone to pack the groceries for me. |
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By: vrybored37
22/09/2009
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Even though I used to be an assistant manager in a progressive supermarket many years ago :).
They were good to work for, but now I don't work for them I prefer to go NZ owned. |
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By: darkshark83
22/09/2009
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Guess I'm also a bit lucky in that the local Wollies got a face lift a year or so ago, I'll be surprised if they spend large amounts of money redoing the inside at this point to look more like the Countdowns.
Anyway we only really go there for bits and pieces during the week - do a big weekly shop at Moore Wilsons. A much nicer place than the rest, a bit pricey on luxuries, but cheaper on stuff like cheese! |
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By: darkshark83
22/09/2009
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Oh and the difference I pay for isn't in the goods really Xtr. It can be in the clientel as well.
Last time I went to the closest Pak 'n' Save I saw a lady teaching her children that if they wanted to try a product without buying it that was OK - just put the now open pack at the back!
Another time I was actually bitten by a little brat who wanted the bottle of coke I was carrying.
I'm not saying that paying more will garauntee this sort of stuff doesn't happen, but I haven't seen it since we switched. |
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By: xtr365705@xtra.co.nz
22/09/2009
12:56 pm Yahoo! Profile:
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darkshark; ALL of the Foodtown and Woolworths supermarkets in NZ are going to change over to Countdown colours inside and out. They've even changed the co logo to look like a peel from a granny smith apple. I would also assume that the staff will wear green as opposed to the blue they wear now.
What gets me is the fact that Progressive head office has always projected Countdown as being the 'discounter' of the three brands; the supermarket to match Pak N Save in prices.
In reality Prog. HOF has gradually increased Countdowns prices while trying to continue with this we're cheaper' image. Now that many customers are hooked into thinking that it is cheaper they co decides to name all of the three brands as Countdown. It's a con because the prices will not be cheaper as promised but in line with the existing Foodtown and Woolwroths prices. If you get both Countdown and Foodtown fliers in your mail note the numerous prices that are the same; even the specials. |
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By: darkshark83
22/09/2009
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Xtr - This tactic is an established one in New Zealand, to the point that it is taught to business students at universities to illustrate that image is more important than price point or discounting.
The Warehouse has been using it for years and recently Bunnings and Mitre10 have gotten in on the act. Nothing new there.
Again I say if you really want cheaper food go somewhere like Moore Wilson in Wellington - beer, deli products etc are more expensive, but day to day things like bread and cheese are cheaper :) |
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By: darkshark83
22/09/2009
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| Oh and as always if you aren't happy with the store - be that for it's service, prices, or clientelle, the choice is always yours to go somewhere else - there is nothing worse than realising that you purchasing habits have been routinized by a little marketing ploy :) |
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By: xtr365705@xtra.co.nz
22/09/2009
2:04 pm Yahoo! Profile:
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| I used to shop at Foodtown/Woolworths and changed because of those marketing ploys[price hikes] you mention. If it means saving at least $25 per week on a $130 shop then I do not mind walking on a bare concrete floor that is kept in excellent condition. The selection of product may be smaller,but hey, who wants to stand in front of 10 types of Peanut Butter wondering what one to get. Stocking the market leading product is all I require. And the particular Pak N Save I shop at has the best customer service I have ever experienced in any shop in NZ. Feel more comfortable dealing with a NZ owned supermarket as well. |
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By: newage@xtra.co.nz
23/09/2009
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| darkone cant say much for the clientel in your woolies you go there???????ha ha.yuk.probably your brat and got caught eh .... ha ha ha! SPRUNG I WILL BE WATCHIN FOR THE LIKES OF YOU!!!!??????? |
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By: nunuloki
23/09/2009
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| I live in a city where I have choice. Pak N Save is definitely cheaper than the others for general groceries (although their fruit and veges are generally pretty awful) but there are often problems getting what you want there. A lot of brands and products are often out of stock or simply not available at all. I go there sometimes and there are great gaping gaps on the shelves where products have sold out on the shop floor and there seems to be little restocking done during the day. Often it is luck whether you can get what you want at any particular time. In contrast you can go to New World or Countdown and, although you usually pay more you know that you can usually get what you came for (Yeah I know, I'm taking a line from Led Zeppelin.) Plus the quality of their produce is much higher (and also more expensive too). I have also had a few hassles with wrong prices at Pak N Save, signs advertising discount prices above the wrong products. The shop n go scanners are great, though, you can check how much your grocery bill has reached as you go which is great if you are on a tight budget. New World now have a self-checkout in my city which is good when you learn how to use it. I suppose it comes down to a case of .... cheapness has a few down sides and you have to pay more for convenience, quality or variety. |
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By: cristalbaul
28/09/2009
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If 'Progressive' think that they can merely rename all Woolworths and Foodtown stores to that of 'Countdown' and end up competitive with their oposition Pak-N-Save (PNS) they are DREAMING.
Rebranding will achieve nothing. Customers are primarily concerned with product at a competiive price.
Service yes, but primarily price.
Prices at Woolworths, Foodtown, Countdown (WFC) can be, on average, around 10-15% higher than PNS, their main oposition. The main reasons for shopping at WFC instead of PNS include: No PNS nearby, PNS out of stock of desired item. Only Pams brand - some of their products are OK, others, not so good. Dearer brand, or unsuitable brand stocked by PNS.
A special that is not price matched by PNS. While calling for a special after 'shopping' at PNS, an odd item had been forgotten and it is not worth returning for just one item... ie. unless the price is outrageous - and sometimes it is, so one WILL, as a result, return to PNS for it.
Patronage, or lack of, is NOTHING TO DO WITH the Woolworths of Foodtown Branding - it is their NON competitive prices.
How could WFC improve patronage ? Leave the branding as is and reduce their prices by 10-15% immediately and closely monitor and match competitors prices.
But, they will not do this so, obviously they have no desire to be competitive.
In Summary: Rebranding, new logos, rhetoric and attempted mind conditioning will not bring additional customers. |
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By: xtr365705@xtra.co.nz
29/09/2009
8:14 am Yahoo! Profile:
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Many years ago when the Oz conglomerate Coles Myers owned Foodtown they ramped up their prices like Woolworths have done now. When the customer count started to fall in great numbers instead of reducing prices they continued to raise them. This in turn made the reducing customer count pay higher and higher prices. Foodtown nearly fell over completely and it wasn't until someone in the co decided to 'remarket' the chain with lower prices. I was there and can tell you that the new lower prices were still at the high end and non competitive with PNS.
In the end it's price that dictates and next up is the new New World opening in New Lynn, Auckland vs Foodtown,Lynmall. |
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