Parnell

Can I ask what people have found difficult with local online grocery here in Auckland.


Talking with a few guys over the New Year who are launching an online competition to Food Stuffs and Progressive Foods

Delivery in around 90 minutes from order, they plan for 60 mins in few months. No delivery charges, fees or subscriptions
Same as in store pricing

They take away 100% of the packaging

They track each item, so you know its fresh or well under its use by date.

They call it a waitrose quality for asda pricing

I'm really trying to work out why I would ever go into a bricks and mortar supermarket again? Anything under an hour I would probably go to a petrol station.

MrsFychan

so how are they going to make ends met let alone make a profit? are they sourcing from local suppliers ?

Parnell

Sourcing from local suppliers

If they weren't going to make a profit their corporate advisors PWC would not be hanging around.

The question you should be asking is how do bricks and mortar supermarkets make any money.

Bo-Jangles

Eh, what is this online shopping experience of which you speak?

I would only say that anything has to be better than the 'choice' that is currently available. I don't generally shop at Countdown, I used the online facility once and as far as I know they are the only ones that offer online grocery shopping? New World and Pak n Save certainly do not. I note that Countdown have dropped their delivery cost quite substantially since I last looked, as it used to be a flat $25 per delivery which is more than 20% of my weekly shopping budget hence why it was a one off event but having checked out the delivery costs today, it is a lot more reasonable.

I used to use Ocado or Tescos in UK quite regularly but abandoned all hope when I got here - for me the key was reliability and availability of product. I am fussy about what makes the grade and given the chance I would prefer to choose my own fruit and veg, for the right look and feel in terms of quality and ripeness etc. I want the greenish unblemished bananas not the battered old things with brown marks on, I want the hard crispy skinned onions, not the ones with green shoots growing out of the top and I want the least fatty meat and bacon.

The only way for me to avoid disappointment is to choose it myself here because quite frankly the quality is way too variable for me to trust someone else to choose it for me.

I guess I would first have to question the 'in store pricing' and whether it was competitive. Overall cost of course will be the major factor; for me in the UK it wasn't an issue and I didn't have to worry about the cost of anything that went into my shopping basket but that's no longer the case since living here.

I would quite like to see Pak n Save move into the on-line market and offer a no-frills / bulk buying service - I would definitely go for that.

Bo-Jangles

PWC will hang around for as long as they are being paid - they're into everything these days and by no means should this be considered a yardstick to measure of the means or successfulness of the business. Seems you know a lot about it all, so perhaps you ought to declare your interest?

Snap Shot

You really are new around here aren't you ?

Parnell

My interest is in logistical models specifically in fulfilment centres. What these guys are doing has major ramifications for this area.

Parnell

Not sure I follow?

These guys have an amazing new logistical method for processing fresh produce in a fulfilment centre.

I can see the potential if the market for online grocery is growing on what I think it is. I have done my own initial research having recently arrived in Auckland and cant find it yet operating at the levels overseas.

Parnell

The in store pricing has an interesting twist as its patrolled by consumers
- The app they have ensures consumers who find cheaper pricing in store send details in. These are verified and price is changed.

After seeing other customers spit, sneeze and cough over fresh produce I welcome the opportunity for it to be packed in controlled environment.

Bo-Jangles

We'll be waiting with baited breath then until mana from heaven is ready to deliver consistently good quality food, on time and within budget.

jmh

One of the things that I wasn't able to get round my way was taramasalata. Found it at Farro: Farro Fresh – Your Everyday Fresh Market

They had a great range of food there and prices were not too bad. I noticed similar pricing to New World on some items. Higher pricing on higher quality stuff. They have an online shop.

BEVS

Can I ask why & how you are interested ?

Passing interest obviously. ........

Parnell

Post 8

Expand the delivery product range to anything effectively which requires temperature control. That is what these guy have essentially worked out.

Not just a online website but the fundamental last mile solution.

What do you think google are spending billions on with their copters

Bo-Jangles

Really? I'm not sure Auckland or the wider New Zealand community is quite ready for this; we've an awful long while to go before we get off the ground and get the first few miles sorted. The biggest department store / retailer in the country recently invested in a whole new website with pretty pictures of all the things they may or may not have in stock and still you can't flipping buy anything online. What a joke!

jmh

In fact, what you describe demonstrates that it might be the right time for a innovative new model. Many people shop online overseas, so the buyers are there. Just needs the retailers to step up to the plate. Some are getting there, but many, as you say (e.g. Farmers) are seriously lagging behind.