Supermarket Brands: Killing in the name of?

I read with great interest that Progressive considering killing all of their supermakret brands and turning all of their stores into Countdowns.

Given that supermarkets typically differentiate their offerings via their different brands (e.g. Pack’n Save is cheap, New World is high quality etc..) this is quite an interesting move. If this does go ahead it will be quite interesting to see how they compete-will their be one generic offering or will we see “budget” Countdowns and “high end” Countdowns depending on the location and what rival supermarket is in the vicinity?

Time will tell.

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  • Steve

    Agree that this is interesting as it seems logical to have a premium and budget brand to compete against the competition, with Foodtown being the brand that is killed and more of AU Woolworths style creeping into NZ

  • Jimmy B

    To me, Progressives’ move makes some sense…

    Why operate/offer both a ‘high end’ and ‘discount’ chain of supermarkets?

    It is more efficient to operate one chain which offers both ‘high end’ and ‘discount’ products. This then allows consumers to sort themselves between high end and low end products.

    Maybe the two brand model, where both chains are essenitally stocking the some products, is a luxury that is innaffordable in the new economic climate.

    I would go as far to say, is their a significant appetite for ‘high end’ supermarket brands in NZ now, and in the foreseeable future anyway?

  • It is more efficient to operate one chain which offers both ‘high end’ and ‘discount’ products. This then allows consumers to sort themselves between high end and low end products.

    really? I think the point is that if you don’t have different brands conusmers may find it hard to “sort” themselves. Stores have limited shelf space and thus you can’t stock everything in one store.

    With only one brand, how do I know whether I’m going to a Countdown that has good quality products or one that has the quality equivilant of pack and save?

    By “high end” I wasn’t referring to places like “Nosh” on Ponsnby road which are truely “luxury” supermarkets.