NZ, where everyone wants a bargain
New data has confirmed Kiwis’ love for a bargain, with $6 out of every $10 spent on groceries going on items which are on sale or promotion.
Insights from Nielsen found New Zealand supermarket shoppers are well ahead of Western world counterparts in wanting to nab savings.
For every $10 spent on groceries last year, Australians spent $4 on promotions, Britain $3, Germany $2 and France just a $1.80.
Retail NZ general manager of public affairs Greg Harford said Kiwis were often shopping on a budget so it was no surprise many were after a bargain.
“Kiwis are definitely keen on a bargain, and we see evidence of that right across the retail sector. They are always looking for a good deal and both retailers and suppliers see massive interest from customers when items go on sale,” Harford said.
“The better the specials, the bigger the interest from consumers — and we see that every year with massive queues for Boxing Day sales.”
Harford said consumers even looked for promotions at retailers which operated “everyday low-price“models, like Kmart and The Warehouse. Colleen Ryan, head of strategy at digital insights company TRA, said Kiwis’ shopping habits were driven by promotions. “People are used to having things on promotion. And there’s almost this [perception] that it would be foolish not to buy on promotion,” Ryan said. “Kiwis are rating price as highly as they are rating food safety and nutritional value.
“In a market where we’ve typically had high interest rates, certainly compared to other countries . . . interest-free promotions are seen as quite valuable. “
Nielsen marketing lead Brent Miller said Kiwi shoppers were conditioned to buy products on promotion. “With this heavy reliance on promotions, shoppers adapt with behaviours like pantry-stocking, brand, product switching in store, or store switching based on specials.”