Stuff asked FGC if it was common knowledge among suppliers that products tend to be on sale longer over the course of a year in Australia than New Zealand. Why is the Kiwi market so much more price-driven? Is it a product of the high cost of groceries here compared to Australia? What are the most common pricing plans when it comes to putting something on sale, is it like a month on sale and a month off? Any insight into the process of developing a sale plan for a particular product line or brand would be good to include in my article.
Katherine Rich responded:
Due to the predictable regularity of promotions, Kiwi shoppers are in the habit of buying on promotion. Most food and groceries bought in supermarkets are purchased while on promotion. Depending on the category, the percentage can be 50-95%.
The only recent relevant example that FGC has raised directly with a retailer was with South Island PAK‘nSAVES, which had announced a move from ‘4 weeks on, 4 weeks off’ promotions to ‘6 weeks on, 2 weeks off’ promotions. Recently the decision was made to return to 4 and 4. The ‘6 weeks on’ scenario essentially meant the stores were buying at the promotional price all the time because there is a one-week buy- in and stores wait one week for the next cycle to start.