Progressive Cedes High End to Foodstuffs with Countdown Decision

Monday 21st September 2009

Progressive Enterprises Ltd is to close two long-standing supermarket brands, Woolworths and Foodtown, and concentrate all activity in a rebranded Countdown.

The move appears to cede "high value" shoppers to Foodstuffs Cooperative's New World brand, and is already provoking debate, especially since Progressive is centring its much larger Australian supermarket effort on the Woolworths brand.

Countdown is Progressive's budget brand and the decision may reflect economic realities in New Zealand, where a profusion of supermarket brands is pitched by two main players at high, middle and low value customer groups.

Foodtown competes directly with New World with more high margin, higher cost products and choices. Woolworths and Countdown effectively compete with Foodstuffs' Pak n Save. Foodstuffs has no Woolworths mid-range equivalent, but owns the 4 Square brand for local groceries.

The NBR website reports that the Countdown decision is part of a $1 billion brand refreshment plan for Progressive's New Zealand supermarkets.

Businesswire.co.nz

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