Countdown (supermarket)

Countdown (supermarket)
Countdown
Type Subsidiary
Industry Retail
Founded 1981
Headquarters Auckland, New Zealand
Number of locations 133 (August 2011)[1]
Owner(s) Woolworths Limited
Parent Woolworths Limited
Website Countdown.co.nz

Countdown is a New Zealand full-service supermarket chain, owned by Woolworths Limited. Founded in 1981, Countdown is now the flagship brand of Progressive Enterprises, Woolworths' New Zealand supermarket subsidiary, with 133 supermarkets across New Zealand. It is the nation's second largest supermarket chain in terms of stores, one store behind New World's 134 stores.

Although stores vary in size, Countdown stores are normally larger than average (newer supermarkets are around 4,000–4,400 m2/43,000–47,000 sq ft[2]) and are able to sell products slightly more cheaply than smaller Foodtown and Woolworths supermarkets.

"New Generation" Countdowns - those that have been built or refurbished since mid-2008 - have 30% of their retail floor space dedicated to fresh foods, a wider range of products (up to 30,000 items[3]), and energy-efficient and sustainable heating and refrigeration systems. Older Countdowns follow the pattern of other New Zealand supermarkets.

In September 2009, Progressive Enterprises announced it would re-brand all its Foodtown and Woolworths stores to Countdown over the next five years as stores are refurbished.[4]

Contents

History

Foodtown, Central Auckland 2008
The same building rebranded as Countdown in 2010

In May 1981, the first Countdown market opened at Northlands Mall in Papanui, Christchurch. This business was established by Rattrays Wholesale and gained momentum through this decade. The Rattrays Wholesale Group included the Rattrays Cash and Carry warehouses, tobacco vans, now known as the Red Arrow Distributors fleet and also included the SuperValue group of franchised supermarkets and now operating as SuperValue/FreshChoice.

In 1992, Foodland Associated Limited (FAL) Australia, purchased the Countdown/Rattrays business. This acquisition was then followed by gaining a majority share holding in Progressive Enterprises Limited, including General Distributors Limited, trading as the Foodtown.

In October 1993, Foodland Associated Limited (FAL) brought the majority shareholding in Progressive Enterprises from Coles Myer and shortly after brought all remaining public shares and delisted Progressive from the New Zealand stock exchange. With this purchase, Progressive Enterprises became the parent company for a number of FAL brands. Progressive Enterprises consisted of Foodtown Supermarkets, Countdown, Georgie Pie, Rattrays and Supervalue.

On June 17, 2002, Progressive Enterprises Ltd bought Woolworths (NZ) Ltd from Hong Kong based owners Dairy Farm Group. The sale saw Progressive's supermarket brands Foodtown, Countdown, 3 Guys, SuperValue and FreshChoice joined by Woolworths, Big Fresh and Price Chopper. As a result, PEL increased its share of the NZ grocery market to approximately 45%.

During the period of 1993-2005, Countdown evolved from a Foodmarket type format offering mainly groceries to a Full Service Discount Supermarket. The stores vary in size due to the consolidation of brands after the merger with Woolworths (NZ) Ltd. Many Big Fresh, Price Chopper and 3 Guys stores were rebranded to Coundown stores during after this merger.

On November 24, 2005, Australian company Woolworths Limited purchased Progressive Enterprises Limited from Foodland Associated Limited.

In October 2006, Progressive Enterprises announced a Discount Fuel Scheme with Gull Petroleum and Shell to offer discounts on petrol when shoppers spend $40 or more in their Woolworths, Foodtown or Countdown Stores. This scheme is similar to the one their Parent company Woolworths Limited offers in Australia. Foodstuffs stores countered this with the same offer at BP and their own New World and Pak'n Save fuel sites.

In July 2008, Onecard, which was previously only available to Woolworths and Foodtown customers, was extended to Countdown.

Operations

As of August, there are a total of 104 Countdown supermarkets operating throughout the North and South Islands of New Zealand.[1]

Major store operations are handled in Progressive Enterprises's head office in Mangere, Auckland. The stores are divided in between 10 areas. Each area has an Area Manager, and all areas are support by a National Operations Manager. Previously, the areas were split in North and South regions, with 5 areas each.

Pricing and specials are divided into two regions: North Island and South Island. Internally, the North Island region is further subdivided into two sub-divisions: Upper and Lower, which are only used for competition against main competitor Foodstuffs (who have two pricing regions in the North Island).

Countdown also provides New Zealand wide services through its online grocery shop[5].

Logistics

All grocery items and general merchandise is supplied to stores through one of three distribution centres: at the head office in Auckland, in Palmerston North, and in Christchurch. Deliveries are made daily to stores.[1]

Chilled and frozen goods are supplied to stores by third party logistics operator Versacold. They operate three distribution centres in Auckland, Palmerston North and Christchurch, and deliver to stores daily.[1]

Produce is supplied to stores by third party Freshmax. Fruit and vegetables from across New Zealand and the world are sent to the three distribution centres in Auckland, Wellington, and Christchurch, where they are shipped to stores daily. However, only certain stores in the Auckland area receive a Sunday delivery.[1]

In recent years, Countdown, as well as Foodtown and Woolworths, have moved away from having on-site butcheries and have moved to centralised facilities. Cabinet Ready Meat (CRM: pre-cut and pre-packed meat) is supplied to non-butchery stores from a central plant in Auckland. Due to the complications of logistics in shipping CRM to the South Island, all South Island Countdowns retain their butcheries.

Current Leadership Team

Peter Smith
Managing Director

Dave Chambers
General Manager Supermarket Operations

Brett Ashley
General Manager Fresh

Elizabeth Ryley
General Manager Marketing and Communications

Murray Johnston
General Manager Merchandise

Richard Manaton
General Manager Strategic Planning

Gideon Thomas
General Manager Finance and Administration

Gillian Davie
General Manager - Human Resources

Competition

Countdown's main competitors are Foodstuffs-owned full-service supermarket New World and discount supermarket Pak'n Save.

In terms of pricing, Countdown generally places on par with New World or in between the two. In a September 2009 Consumer magazine survey, Countdown was placed third in Auckland, with a basket of 40 brand items costing $136, $4 behind New World and $21 behind Pak'n Save.[6] However, a year earlier in September 2008, a Consumer magazine survey placed Countdown second in Auckland, with a basket of 15 private label items costing $38.24, only $0.91 behind fellow Progressive brand Woolworths (the Woolworths store in question has since become a Countdown), and $1.87 ahead of the nearest rival, Pak'n Save.[7]

Marketing and Branding

Countdown's current branding was introduced on 21 September 2009. The word "Countdown" remained the red of the older logo, but with a slightly different font. The light green background disappeared and a logo and the slogan "Shop Smarter" was added. The logo - representing fresh produce - is also used by Woolworths stores in Australia.

On stores, the slogan is missing and the word "Countdown" is white. The logo and name sit on a black background.

Countdown's current slogan is "Shop Smarter", which was introduced in mid-2009 to the Countdown, Woolworths and Foodtown brands. The new slogan also accompanied the introduction of "The Smart Shopper", a series of 60-second thrice-weekly television segment hosted by Richard Till.[8]

Loyalty schemes

Countdown has two major loyalty schemes, which it shares with both the Woolworths and Foodtown brands.

onecard

Onecard is Countdown's discount and rewards programme, introduced to Countdown in July 2008 after previously only being available at Foodtown and Woolworths stores. The actual Onecard is a standard magnetic stripe card that is loaded into the POS system via the EFTPOS terminal. Apart from giving discounts on "Onecard specials" (specials only available to Onecard holders), points are accumulated for spending whole $10 units or buying products with Onecard bonus points. These points are automatically redeemed four times a year for cash vouchers. The Onecard is also used for competitions - entry is automatic when the Onecard is swiped after filling competition conditions (e.g. buying a specific product).

Unlike membership-loyalty schemes in most retail outlets, Countdown's Onecard specials are the predominant visible price on member-discounted products; you have to look closer to see the non-member price, which is typically above the price available at competing supermarkets.

Fuel discounts

Introduced in 2006, Countdown supermarkets offer fuel discounts for all transactions of $40 and over (as of September 2009). These discounts can be redeemed at Shell/Z, and Gull petrol stations.

Private Label brands

Countdown has six private label brands - of which all except Signature Range are in common with private label brands of Woolworths Supermarkets Australia.

  • Woolworths Home Brand - low-cost everyday grocery items
  • Signature Range - everyday grocery items, on par with branded products (previously owned by (FAL) Foodland Associated Limited in Western Australia which operated the Action Supermarkets, Supa Valu and Dewsons.
  • Woolworths Select / Signature Range Select - high-end grocery products
  • Woolworths Naytura
  • Woolworths Freefrom - grocery items for specific dietary requirements
  • Woolworths Essentials - general merchandise

See also

References

http://www.iphonewzealand.co.nz/2009/all/law-suit-woolworths-vs-apple/

External links


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