Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.


Rikkitic

Awrrr
19062 posts

Uber Geek
+1 received by user: 16302

Lifetime subscriber

#284292 12-Apr-2021 12:08
Send private message

Do supermarkets give each other ‘exclusive rights’ on certain items or is there something else going on here? I am a vegetarian and I buy the Veggie Delights ‘classic hot dogs’. They used to only be available from Countdown and I didn’t think much of it. Then Countdown stopped stocking them. A little later I found them at New World, which is now the only place that stocks them.

 

In other countries different supermarkets stock the same product lines, as ours here also do for many things that are not the store’s own brands. But I wonder if I can spin this particular example into a conspiracy theory. I remember several years ago our local New World suddenly stopped stocking a particular organic milk. I complained and had a long discussion with the store manager about this. Eventually he admitted that orders had come from the New World franchise headquarters to stop stocking this particular milk brand. He didn’t say why and the discussion ended there.

 

New Zealand does seem to be a country with a monopoly problem (too many to quote here, look up Commerce Commission). So is there something nefarious going on here or does it have a legitimate reason? Why can’t you go into any supermarket and find the same items as in any other one, excepting the store brands, of course? Is it Q’s fault?

 

  





Plesse igmore amd axxept applogies in adbance fir anu typos

 


 


Filter this topic showing only the reply marked as answer View this topic in a long page with up to 500 replies per page Create new topic
 1 | 2 | 3 | 4 | 5 | 6 | ... | 8
CrashAndBurn
693 posts

Ultimate Geek
+1 received by user: 105


  #2691363 12-Apr-2021 12:15
Send private message

From what I understand, product makers pretty much buy "shelf/space" rights from retailers to sell their items. From here you add other conditions such as exclusivity and volume and margins amongst other things. It is possible that it was a slow mover for Countdown at that store hence they decided to let go of it and allocate the space to another product that has a quicker turnover.




floydbloke
3646 posts

Uber Geek
+1 received by user: 4554

ID Verified

  #2691364 12-Apr-2021 12:19
Send private message

Something along those lines certainly appears to happen at DIY stores, i.e. you can only buy Ryobi at Bunnings.

 

It also seems that manufactures provide different SKUs for the exact same product to Mitre10 and Bunnings, to prevent exploitation of price matching and 15% discount I expect.  I found this out when I was in the market for a bathroom tap.  They both sell the Foreno brand.  Identical looking taps with the same dimensions and speciifcations will have different sub-branding and part numbers.

 

It also seems that certain specific laptop model numbers from the 'big' manufacturers can only be found at specific 'tech' chains (NL, HN)

 

 

 

 

 

 





Sometimes I use big words I don't always fully understand in an effort to make myself sound more photosynthesis.


Rikkitic

Awrrr
19062 posts

Uber Geek
+1 received by user: 16302

Lifetime subscriber

  #2691365 12-Apr-2021 12:21
Send private message

That just makes it all so much more complicated! What is the point of one stop shopping if you can't get it all at one shop?

 

 





Plesse igmore amd axxept applogies in adbance fir anu typos

 


 




LostBoyNZ
622 posts

Ultimate Geek
+1 received by user: 190


  #2691367 12-Apr-2021 12:28
Send private message

CrashAndBurn:

 

From what I understand, product makers pretty much buy "shelf/space" rights from retailers to sell their items. From here you add other conditions such as exclusivity and volume and margins amongst other things. It is possible that it was a slow mover for Countdown at that store hence they decided to let go of it and allocate the space to another product that has a quicker turnover.

 

 

That's what I understand too. I know from experience (6 years ago at least) that Countdown sells the endcaps (the displays at the end of isles) and they sell being promoted in the mailer. I'd be pretty sure they sell shelf/space rights too. Taking soft drinks as an example, look at the space Coke gets vs Pepsi. Yes Coke vastly outsells Pepsi, and in part I know the shelf space is sometimes taken by pushy reps and merchandisers, but I'd be pretty sure deals go on.

 

It'd be really interesting to hear someone who works in the industry.

 

For stacking / not stocking some products in New World, I believe it comes down to individual stores too. At least in the South Island (I don't know about those in the North Island but they are run a bit differently there), they're owner operated, so one branch may buy in some items that other stores don't, or may decline to stock some.

 

 

 

 





Powershop referral: Get $150 of credit spread over 12 months with this link: https://secure.powershop.co.nz/r/grahamp-q8PwhBv?p=1827

 

---

 

Virtual Reality rentals for birthdays, gaming weekends, trade show booths, holidays, family gatherings & more

 

https://www.virtualrealityrental.co.nz/ - Including the Quest 3, Pimax Crystal Light, PlayStation 5 consoles and more...


CrashAndBurn
693 posts

Ultimate Geek
+1 received by user: 105


  #2691370 12-Apr-2021 12:31
Send private message

Rikkitic:

 

That just makes it all so much more complicated! What is the point of one stop shopping if you can't get it all at one shop?

 

 

Space is a premium as it is limited. 

 

I remember when I was younger and working at my parent's snack shop overseas. Coke and Pepsi tries to one-up each other almost every 6-12 months to get my parents to sell their product. Starts with a free display fridge, then volume discounts e.g. every 10 cases you get a case free. The other party will then go free 2 cases. Until something has got to give.


floydbloke
3646 posts

Uber Geek
+1 received by user: 4554

ID Verified

  #2691374 12-Apr-2021 12:42
Send private message

CrashAndBurn:

 

...

 

Space is a premium as it is limited. 

 

...

 

 

 

 

[rant]

 

Not at *&^%ing Pak'n'Save Porirua it ain't....can't be......half the shelves are always empty...they always seem to be sold out of a lot of the things I go in there for.

 

[/rant]

 

 





Sometimes I use big words I don't always fully understand in an effort to make myself sound more photosynthesis.


 
 
 
 

Shop now for Dyson appliances (affiliate link).
CrashAndBurn
693 posts

Ultimate Geek
+1 received by user: 105


  #2691376 12-Apr-2021 12:44
Send private message

floydbloke:

 

CrashAndBurn:

 

...

 

Space is a premium as it is limited. 

 

...

 

 

 

 

[rant]

 

Not at *&^%ing Pak'n'Save Porirua it ain't....can't be......half the shelves are always empty...they always seem to be sold out of a lot of the things I go in there for.

 

[/rant]

 

 

Are those local items that are empty? As could be due to shipping delays due to covid/Auckland port/Suez canal?


OldGeek
989 posts

Ultimate Geek
+1 received by user: 409

ID Verified
Lifetime subscriber

  #2691380 12-Apr-2021 12:49
Send private message

The issue of product availability at retail level is usually simply a product of commercial reality.  With Mitre10 vs Bunnings, the price matching is always 'for an identical product' so each has an incentive to sell products exclusively available only from them.  Sometimes this will be an entire brand but mostly it is specific models.  For example, both Mitre10 and Bunnings sell Karcher waterblasters, but the same model is never stocked by both.

 

It all boils down to money - both the supplier and the retailer trying to maximise whatever leverage each has over the other.





-- 

OldGeek.

 

Quic referal code: https://account.quic.nz/refer/581402 and use this code for free setup: R581402E48MJA


Rikkitic

Awrrr
19062 posts

Uber Geek
+1 received by user: 16302

Lifetime subscriber

  #2691381 12-Apr-2021 12:52
Send private message

OldGeek:

 

It all boils down to money - both the supplier and the retailer trying to maximise whatever leverage each has over the other.

 

 

How about consumers maximising whatever leverage they have? If you want my money, give me what I want!

 

 





Plesse igmore amd axxept applogies in adbance fir anu typos

 


 


LostBoyNZ
622 posts

Ultimate Geek
+1 received by user: 190


  #2691386 12-Apr-2021 13:05
Send private message

Rikkitic:

 

How about consumers maximising whatever leverage they have? If you want my money, give me what I want!

 

 

That's the problem of a monopoly or in our case a duopoly, consumers have basically no leverage. Chances are someone has run the numbers and found that, taking supermarkets as an example, the extra they'd earn by having stock of 'everything' (as you say, home brand products aside) would be much less than the extra they earn by squeezing extra money out of suppliers.

 

And while it isn't right that suppliers might do offers like hey supermarket chain, if you buy x number of this, you can have exclusive rights on this other product, it wouldn't surprise me in the least if those deals happen all the time.





Powershop referral: Get $150 of credit spread over 12 months with this link: https://secure.powershop.co.nz/r/grahamp-q8PwhBv?p=1827

 

---

 

Virtual Reality rentals for birthdays, gaming weekends, trade show booths, holidays, family gatherings & more

 

https://www.virtualrealityrental.co.nz/ - Including the Quest 3, Pimax Crystal Light, PlayStation 5 consoles and more...


Lias
5655 posts

Uber Geek
+1 received by user: 3978

ID Verified
Trusted
Lifetime subscriber

  #2691388 12-Apr-2021 13:09
Send private message

Rikkitic:

 

OldGeek:

 

It all boils down to money - both the supplier and the retailer trying to maximise whatever leverage each has over the other.

 

 

How about consumers maximising whatever leverage they have? If you want my money, give me what I want!

 

 

Welcome to free market capitalism at it's worst. Greed is good remember?

 

 





I'm a geek, a gamer, a dad, a Quic user, and an IT Professional. I have a full rack home lab, size 15 feet, an epic beard and Asperger's. I'm a bit of a Cypherpunk, who believes information wants to be free and the Net interprets censorship as damage and routes around it. If you use my Quic signup you can also use the code R570394EKGIZ8 for free setup. Opinions are my own and not the views of my employer.


 
 
 

Support Geekzone with one-off or recurring donations Donate via PressPatron.
Oblivian
7345 posts

Uber Geek
+1 received by user: 2117

ID Verified

  #2691392 12-Apr-2021 13:13
Send private message

From reading between the lines for a few years, Product turnover (no point binning shelf life products regularly cause noone is buying it) can be deleted

 

Contracts / Distributor can have a spat and pull product

 

Independent franchise operators can have a say if they have the same as the big-boys.

 

Bottom shelf location costs the wholesaler/distributor less. (budget brands and so forth often there, or squashed) - Eye Level costs a lot more

 

End of isle bays may be there at a loss to the supermarket once you factor advertising and target market (remember 99c 1.5Lt coke days.. they did them over christmas on the chance you splashed out on more christmas food too, basically at a loss factor just to get the Coke brand out there)

 

A lot of this come out over Covid with the perceived pricing fluctuations and 'no specials'/ apparent increases as there was no mail delivery, little advertising or incentive for the reps to keep up with replenishments and distribution chain changes.

 

Basically a supermarket isn't what we all make out or would like it to be. They're a convenience front end to a whole lot of back end trade and distribution that the little guy has less buying power of. So are at the mercy of a heap of factors.

 

Also, take a note of your standard buy pricing since Apr1. on medium items. Might find each item up 20-50c like I have been. And apparently more to come (herald blaming the min wage changes across the entire chain means ~$1 at the shelf)

 

Specialty breads up to $4.30. KFC up, Subway up, think most the maccas have gone on some items again. V, Chocolate bars. The usual healthy treats ;)


wellygary
8810 posts

Uber Geek
+1 received by user: 5287


  #2691400 12-Apr-2021 13:30
Send private message

Rikkitic:

 

New Zealand does seem to be a country with a monopoly problem (too many to quote here, look up Commerce Commission). So is there something nefarious going on here or does it have a legitimate reason? Why can’t you go into any supermarket and find the same items as in any other one, excepting the store brands, of course? Is it Q’s fault?

 

 

The big background  for NZ's "monopoly problem" is its small size... to develop large numbers of producers you need a large number of consumers, 

 

Often as markets grow, new competitors can find enough demand and enter ( 2 degrees is a good example)

 

But for Food the demand is pretty much dependant on population, also for smaller producers they may find it hard to have enough production to provide enough stock both chains....


neb

neb
11294 posts

Uber Geek
+1 received by user: 10018

Trusted
Lifetime subscriber

  #2691406 12-Apr-2021 13:41
Send private message

LostBoyNZ:

That's what I understand too. I know from experience (6 years ago at least) that Countdown sells the endcaps (the displays at the end of isles) and they sell being promoted in the mailer. I'd be pretty sure they sell shelf/space rights too. Taking soft drinks as an example, look at the space Coke gets vs Pepsi. Yes Coke vastly outsells Pepsi, and in part I know the shelf space is sometimes taken by pushy reps and merchandisers, but I'd be pretty sure deals go on.

 

 

Another way of getting shelf space is to make twenty differently-packaged versions of the exact same product and require that the seller display all of them, which crowds out anything else. Toothpaste immediately springs to mind here...

neb

neb
11294 posts

Uber Geek
+1 received by user: 10018

Trusted
Lifetime subscriber

  #2691412 12-Apr-2021 13:47
Send private message

Rikkitic:

How about consumers maximising whatever leverage they have? If you want my money, give me what I want!

 

 

That's not the typical consumer though. This is the typical consumer:

 

 


 1 | 2 | 3 | 4 | 5 | 6 | ... | 8
Filter this topic showing only the reply marked as answer View this topic in a long page with up to 500 replies per page Create new topic








Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.



Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.