In a case of double vision that nobody can explain, shoppers in Napier can buy their groceries from one of two Woolworths in the central city that are diagonally opposite each other.
The two stores – Woolworths Carlyle, or until recently Countdown Carlyle, and Woolworths Napier, formerly Countdown Napier, are separated only by a street.
They’ve both in recent days rebranded to Woolworths, but their continued existence has raised plenty of questions.
Is this an example of landbanking? No, says Woolworths. Or is it some mistake?
Author of the Napier in Frame blog Andrew Frame is an expert on the supermarkets’ histories.
“Carlyle was a Big Fresh and before that it was also a Woolworths. Big Fresh was always the swankier brand,” he said.
“It had the singing vegetables. It had the monkey that swung round and round. It was more of an attraction – a bit posher.”
The two supermarkets’ branding became the same sometime in the 2000s, he said.
“It certainly shows there’s been a duopoly in our supermarket providers, because while we have two Countdowns across the road from each other there’s actually a third supermarket across the road from those, all within the space of 500 metres.
“That’s a Pak’n’Save, owned by Foodstuffs, which is a competitor of Woolworths.”
Frame said that could be a reason the two Woolworths persist.
“Realistically, you would expect at some stage one of the Countdowns to close. They can’t or they won’t because it would give the option to Foodstuffs to potentially swoop in and take a 2-1 advantage.”
Woolworths tight-lipped on supermarket double up
RNZ asked Woolworth why it kept the two supermarkets open, but it didn’t say.
In a statement it mentioned its long history in New Zealand back to 1929 and the many brands it’s had over the years, including the now departed Foodtown, Big Fresh and 3 Guys.
“The Commerce Commission has looked into allegations of landbanking and confirmed in the Second Annual Grocery report that it has no concerns.”
Outside the supermarkets, many shoppers said they’d grown use to the situation, although they admitted it was strange.
“It’s a bit confusing, unnecessary,” one woman said, adding she always went to one of the supermarkets because she moved to Napier and that was her husband’s chosen store.
“It is a little strange, I have to say,” one man said.
Most people spoken to had a favourite, whether it was due to a particular layout or car parking.
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Historical anomaly
Managing director of business development service First Retail group, Chris Wilkinson, said anti-landbanking rules meant the situation couldn’t happen now.
“It’s a legacy situation that’s been arrived at because they essentially inherited the brand way back when.
“Way back when there was no legislation that stopped them doing this,” he said.
“There has been less demand for these competitive positions, because most of the supermarkets are actually well positioned now.”
There were good business reasons to keep both sites, he said.
“The reality is, if another retailer opened in that space the likelihood is that retailer would be selling products that would be competitive.
“It may be a large pharmacy. Even in home improvement now we’re seeing those creep of categories, so [people are] popping into Mitre 10 to get your dishwashing liquid, or popping into Chemist Warehouse to get your cleaning gear.”
Napier had a competitive and growing retail market, Wilkinson said.
Frame has watched closely over the effect of that.
His 2020 writing on the supermarkets took a Dickensian title – A Tale of Two Countdowns.
“Two Countdowns, both alike in vicinity; In fair Napier, where we lay our scene; From Russian fudge, break to new Dilmah tea; Where hand sanitiser on special ensures Covid-cautious hands remain clean,” began his history about the sites.
There are a couple of other instances where supermarkets with the same owner and branding are near each other, but none can compete with Napier’s double Woolworths.
rnz.co.nz
