Countdown in expansion drive as food prices fall

One of New Zealand’s biggest supermarket chains is planning to spend $500 million on a big expansion plan, opening about three to four new shops every year for the next few years.

Dave Chambers, chief executive of the 184-store Countdown business owned by Australia’s Woolworths, said eight new Countdown stores were opened last year, two replacement stores and four new franchise stores.

“Over the coming three years we expect to open three to four new

Our total investment in New Zealand is planned to be around $500 million over the next few years. Dave Chambers chief executive

stores per year. We will also be accelerating our refurbishments of existing stores,” Chambers told supermarket suppliers yesterday at the Vodafone Events Centre in Manukau.

“Our total investment in New Zealand is planned to be around $500 million over the next few years and with a goal firmly in place to continue to grow our store numbers throughout New Zealand.”

Chambers acknowledged a recent announcement saying six Countdowns would close.

“In New Zealand, I have undertaken our own review since returning and we identified six supermarkets that could be closed before the end of their lease terms. We had already planned to close one store this financial year, Rangiora Central, and that’s because there’s a brand new store around the corner, Rangiora East. With the other stores, we will work through the various commercial discussions that need to take place, and make announcements when we have more certainty.”

Chambers told suppliers that food prices were dropping.

“Countdown Supermarkets food prices showed deflation of 0.3 per cent, with lower prices across most categories,” he said of the 2016 financial year.

“Countdown tracks the prices of a basket of 100 of the most commonly purchased items in our supermarkets. Every month we report this to the market, and this basket continues to come down.

“As at July, the price of this basket was 1.9 per cent cheaper than a year ago and 3 per cent cheaper than the year before that.”

Statistics NZ said that last year, fresh milk prices dropped 14 per cent, and breads and cereals were down.

Meat, poultry, and fish decreased 3.8 per cent and chicken prices were at their lowest level since January 2008, it said.