ACNielsen Releases Comprehensive Warehouse Study

Can The Warehouse Convert? ACNielsen Releases Comprehensive Warehouse Study

As industry analysts continue to monitor The Warehouse's moves towards grocery, ACNielsen has today released research which shows the extent of the Kiwi love affair with The Warehouse.

ACNielsen research shows that over the last month a staggering 82 percent of New Zealand household shoppers have visited The Warehouse, 28 percent more than the nearest national grocery chain. However that penetration does not currently translate into grocery buying frequency. While 91 percent of shoppers visit a supermarket at least once a week, only 17 percent visit the Warehouse once a week or more.

"The challenge for The Warehouse is converting Kiwi consumers' comfort and familiarity with Red Sheds into more frequent visits and grocery purchases," says ACNielsen New Zealand Managing Director Alistair Watts. "It's both a challenge and an opportunity."

"Shoppers are increasingly favouring one-stop shopping and as The Warehouse continues to expand its range of goods, its geographical spread and resulting high foot traffic gives The Warehouse good potential to move into grocery."

"Also, retail chains are increasingly blurring their definitions," adds Watts. "Some supermarkets have started offering electronic goods such as DVD players and breadmakers. Some Warehouse stores sell gym equipment and pet accessories."

The Warehouse reportedly has 80 stores across New Zealand and plans to add 10 more, which will cover some 450,000 square metres. The only supermarket with more outlets is New World.

"New Zealanders love the fact that The Warehouse is cheap, the very wide variety of goods and the convenience: it's often the first port of call for people shopping for presents, for example," says Watts.

"However, our study found that consumers have reservations about the size of the new self-styled Mega Sheds. Will they be able to find what they are looking for or will the stores become overwhelming large?"

ACNielsen's study also notes that a move into grocery by The Warehouse would require logistics, specialist staffing and equipment for handling perishables and frozen foods.

ENDS

Report methodology The Warehouse report draws on research from across a range of ACNielsen products and services, including: HOMESCAN(tm) panel of households measuring actual consumer purchasing. Panel Views annual survey of household shopper views and attitudes towards grocery shopping. Panorama continuous survey on consumer behaviours and attitudes. Customised research via telephone interviews. Shopper Trends annual report on shopper behaviour.

About ACNielsen ACNielsen, a VNU company, is the world's leading marketing information company. Offering services in more than 100 countries, the company provides measurement and analysis of marketplace dynamics and consumer attitudes and behaviour. Clients rely on ACNielsen's market research, proprietary products, analytical tools and professional service to understand competitive performance, to uncover new opportunities and to raise the profitability of their marketing and sales campaigns.

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