More in store: Improving online offerings, discounting and rising incomes lift revenue

The Supermarkets, Grocery Stores and Convenience Stores industry's performance over the past five years has been marred by losses incurred during 2013-14. Weak population and household disposable income growth caused product sales volume growth to stall that year. In response, many industry players discounted prices heavily to try and stimulate sales, although revenue still fell by 3.1%. Since then, industry revenue has posted modest growth each year, with strengthening income and population growth mitigating the effects of ongoing price discounting. Overall, industry revenue is forecast to grow at a marginal compound annual rate of 0.3% over the five years through 2017-18, to total $18.7 billion. This includes forecast growth of 1.1%...read more.

Industry Statistics & Market Size
Revenue
$19bn
Annual Growth 13-18
0.3%
Forecast Growth 18-23
Profit
Employment
53,338
Businesses
3,412

Industry Threats & Opportunities

  • The increasing trend of top-up shops in place of a weekly shop are favouring small local stores
  • As supermarkets improve their online offering, online grocery shopping is likely increase
  • Industry Report - Industry Key Buyers Chapter

    The Supermarkets, Grocery Stores and Convenience Stores industry is highly concentrated, with the four largest operators accounting for over 80% of industry revenue. The industry is one of the most concentrated industries in New Zealand, due to the dominance of its major players, Foodstuffs and the Woolworths Group. These two companies own some of the most recognised retail brands in the country, New World, Pak'nSave, Four Square and Countdown. Outside of the two major players, the industry is fragmented, with players typically being small-scale grocery retail operations that focus on niche products or a specific region. Ind...purchase to read more.

    Additional Insights for the Supermarkets, Grocery Stores and Convenience Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Supermarkets, Grocery Stores and Convenience Stores Industry are

  • Ability to control stock on hand
  • Attractive product presentation
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Population in the Supermarkets, Grocery Stores and Convenience Stores industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Supermarkets, Grocery Stores and Convenience Stores in New Zealand Industry?

    Operators in the industry are primarily engaged in retailing groceries, such as meat, fish, fruit, vegetables, dairy products, bread, canned goods, toiletries and cleaning items. The industry includes full-service supermarkets, grocery stores and convenience stores, but excludes specialised food-line grocers, such as butchers and greengrocers.

    Industry Products
  • Dry and packaged foods
  • Meat products
  • Fresh fruit and vegetables
  • Bread and cereals
  • Beverages
  • Cigarettes and general merchandise
  • Toiletries and health products
  • Milk, cheese and eggs
  • Industry Activities
  • Operating supermarkets
  • Operating grocery stores
  • Operating convenience stores
  • Operating dairies
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Population
  • Consumer sentiment index
  • Demand from cafes, restaurants and takeaway food services

  • Current Performance
  • Big versus small
  • Price discounting
  • In-store changes
  • Participation and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Online shopping growth
  • Private-label product potential
  • Profitability and structure
  • Table: Supermarkets, Grocery Stores and Convenience Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Supermarkets, Grocery Stores and Convenience Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in New Zealand

  • Key Selling Industries
  • Fruit and Vegetable Wholesaling in New Zealand
  • General Line Grocery Wholesaling in New Zealand
  • Liquor and Tobacco Product Wholesaling in New Zealand
  • Meat Processing in New Zealand
  • Meat, Poultry and Smallgoods Wholesaling in New Zealand
  • Soft Drink and Pre-Packaged Food Wholesaling in New Zealand

  • Products & Services
  • Dry and packaged foods
  • Meat products
  • Fresh fruit and vegetables
  • Beverages
  • Bread and cereals
  • Milk, cheese and eggs
  • Cigarettes and general merchandise
  • Toiletries and health products
  • Chart: Supermarkets, Grocery Stores and Convenience Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Fifth income quintile
  • Fourth income quintile
  • Third income quintile
  • Second income quintile
  • First income quintile
  • Chart: Major Market Segmentation for the Supermarkets, Grocery Stores and Convenience Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Supermarkets, Grocery Stores and Convenience Stores

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Supermarkets, Grocery Stores and Convenience Stores Industry

  • Industry Globalization
    Foodstuffs (NZ) Limited, Woolworths New Zealand Group Limited,
  • Table: Foodstuffs (NZ) Limited - financial performance
  • Table: Woolworths New Zealand Group Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Supermarkets, Grocery Stores and Convenience Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Supermarkets, Grocery Stores and Convenience Stores Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Click And Collect
  • A method of online shopping where consumers select and pay for the goods they wish to purchase online, and collect the items from a physical store or other designated collection point.
  • Private Label
  • Product brands that are owned by the store they are sold in. These products are produced for supermarkets under contract and typically earn higher profit margins.
  • Self-Serve Checkout
  • Checkouts available for customers to use themselves with minimal supervision from a staff member. Also known as self-checkouts.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Supermarkets, Grocery Stores and Convenience Stores in New Zealand market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Supermarkets, Grocery Stores and Convenience Stores in New Zealand:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Supermarkets, Grocery Stores and Convenience Stores in New Zealand market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Supermarkets, Grocery Stores and Convenience Stores in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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