1 00:00:00,160 --> 00:00:03,120 Speaker 1: Now once again New World has run out of the 2 00:00:03,120 --> 00:00:06,080 Speaker 1: big prize in their supermarket promotion. This time it's the 3 00:00:06,120 --> 00:00:09,080 Speaker 1: snake brasier. Previously it's been the knife block, or it's 4 00:00:09,119 --> 00:00:12,360 Speaker 1: been the Master Chef Crockery or whatever. Chris Quinn is 5 00:00:12,400 --> 00:00:14,720 Speaker 1: the CEO of food Stuff's North Island and with us. 6 00:00:14,720 --> 00:00:17,079 Speaker 2: Hello Chris, good afternoon, Heather. 7 00:00:17,320 --> 00:00:19,840 Speaker 1: Now, if people have got enough stickers, the forty five 8 00:00:19,880 --> 00:00:22,159 Speaker 1: stickers and the sixty dollars for the brazier, will you 9 00:00:22,239 --> 00:00:22,680 Speaker 1: honor it? 10 00:00:24,120 --> 00:00:26,840 Speaker 2: So, look, we've been blown away by how popular this 11 00:00:26,920 --> 00:00:30,680 Speaker 2: has been, Heather, and just the demand. And as we've 12 00:00:30,680 --> 00:00:33,800 Speaker 2: probably talked about before, we try and guess a year ahead, 13 00:00:34,000 --> 00:00:36,280 Speaker 2: what ones, what items are going to be the most popular, 14 00:00:36,840 --> 00:00:39,440 Speaker 2: and you know, we like to think that everyone will 15 00:00:39,479 --> 00:00:42,960 Speaker 2: get the item they most wanted, but guessing what mix 16 00:00:43,040 --> 00:00:44,640 Speaker 2: of the five or six items that we have in 17 00:00:44,680 --> 00:00:46,920 Speaker 2: this promotion would be desired and where they would sit 18 00:00:47,159 --> 00:00:49,920 Speaker 2: is you know, we get international advice, we get local advice. 19 00:00:50,479 --> 00:00:53,040 Speaker 2: We give it a best shot. Probably one thing that 20 00:00:53,240 --> 00:00:56,920 Speaker 2: hasn't been talked about. We ordered seventy thousand of these 21 00:00:56,960 --> 00:01:00,560 Speaker 2: braziers and we've been blown away by how many people 22 00:01:00,600 --> 00:01:02,480 Speaker 2: decided that was the thing they wanted. 23 00:01:04,520 --> 00:01:08,280 Speaker 1: Is there no opportunity for you to say to get 24 00:01:08,280 --> 00:01:10,679 Speaker 1: the people in who want them and go, Okay, there's 25 00:01:10,720 --> 00:01:13,600 Speaker 1: another five hundred people, and go and get those autism 26 00:01:13,680 --> 00:01:14,319 Speaker 1: for these people. 27 00:01:15,319 --> 00:01:17,160 Speaker 2: We ordered them a year ago because you've got a 28 00:01:17,160 --> 00:01:21,640 Speaker 2: slot into a production schedule with the manufacturer internationally. We 29 00:01:21,760 --> 00:01:24,319 Speaker 2: got the number that we thought would you know, never 30 00:01:24,520 --> 00:01:26,720 Speaker 2: be desired, and has turned out to be the number. 31 00:01:26,760 --> 00:01:29,640 Speaker 2: We have for the last little while been scraping the 32 00:01:29,640 --> 00:01:32,280 Speaker 2: barrel wherever we can, and we know we've got another 33 00:01:32,440 --> 00:01:35,720 Speaker 2: couple of thousand on the way. I don't know how 34 00:01:35,760 --> 00:01:38,120 Speaker 2: many people out there, you know, this is still their 35 00:01:38,120 --> 00:01:40,319 Speaker 2: heart's desire and the one they want the most. We 36 00:01:40,400 --> 00:01:43,280 Speaker 2: have got five other items in the promotion, and we've 37 00:01:43,280 --> 00:01:46,160 Speaker 2: still got stock of those five other items. This one 38 00:01:46,200 --> 00:01:47,880 Speaker 2: we've scraped the bottom of the barrel and got as 39 00:01:47,960 --> 00:01:50,120 Speaker 2: many as we possibly can. We just can't get any 40 00:01:50,120 --> 00:01:51,000 Speaker 2: more manufactured. 41 00:01:51,320 --> 00:01:53,600 Speaker 1: Yeah, So who's doing the estimating for you? Because the 42 00:01:53,600 --> 00:01:55,640 Speaker 1: person doing the estimating sucks at it because they do 43 00:01:55,680 --> 00:01:56,360 Speaker 1: this every time. 44 00:01:57,040 --> 00:01:59,200 Speaker 2: Well, it's not the same person, and we use a 45 00:01:59,200 --> 00:02:02,360 Speaker 2: global source company who tell us about the trends from 46 00:02:02,400 --> 00:02:05,360 Speaker 2: every other country that these promotions have been run, give 47 00:02:05,400 --> 00:02:07,760 Speaker 2: us an indication of the mix. We test that against 48 00:02:07,800 --> 00:02:09,919 Speaker 2: our best knowledge locally, but it's a very hard thing 49 00:02:09,960 --> 00:02:10,880 Speaker 2: to predict us to. 50 00:02:11,160 --> 00:02:14,000 Speaker 1: Have you Look, I take your point, and I totally 51 00:02:14,080 --> 00:02:16,960 Speaker 1: accept that you can't possibly know what people actually want. 52 00:02:17,120 --> 00:02:19,280 Speaker 1: But have you got some sort of a system where 53 00:02:19,280 --> 00:02:21,280 Speaker 1: in real time you can see you're down to five 54 00:02:21,720 --> 00:02:23,720 Speaker 1: and you need to warn people Listen, we're down to five, 55 00:02:23,800 --> 00:02:24,520 Speaker 1: get in quickly. 56 00:02:25,160 --> 00:02:29,400 Speaker 2: Oh? Absolutely, And that's why on every store's entrance there 57 00:02:29,440 --> 00:02:31,160 Speaker 2: is a board saying where stock is up to and 58 00:02:31,200 --> 00:02:32,920 Speaker 2: what's running low and what's not available. 59 00:02:33,840 --> 00:02:36,160 Speaker 1: And explain this. Explain this to me. 60 00:02:36,200 --> 00:02:36,720 Speaker 2: I do. So. 61 00:02:36,880 --> 00:02:39,160 Speaker 1: The person that I know that's the most frustrated about 62 00:02:39,160 --> 00:02:43,359 Speaker 1: this is Emma Comma frustrated of Centalias. And what happened 63 00:02:43,480 --> 00:02:45,880 Speaker 1: is that she has she had the forty five stickers 64 00:02:45,919 --> 00:02:47,919 Speaker 1: and she had the sixty dollars. She shops at the 65 00:02:47,960 --> 00:02:50,240 Speaker 1: Mission Bay New World. At the Mission Bay New World 66 00:02:50,240 --> 00:02:52,399 Speaker 1: for two weeks, they had to sign up saying we're 67 00:02:52,400 --> 00:02:55,480 Speaker 1: out of stock, but we are getting restocked. For two 68 00:02:55,560 --> 00:02:58,239 Speaker 1: weeks they told her they were getting restocked. So Emma thought, 69 00:02:58,280 --> 00:03:00,000 Speaker 1: it's totally fine. I'm not going to go to an 70 00:03:00,160 --> 00:03:01,960 Speaker 1: I'm not going to go to another New World anywhere 71 00:03:01,960 --> 00:03:04,080 Speaker 1: in the city because my new World will have it 72 00:03:04,120 --> 00:03:06,040 Speaker 1: in two weeks time or at some point. Now they're 73 00:03:06,040 --> 00:03:06,680 Speaker 1: not getting it all. 74 00:03:06,680 --> 00:03:10,000 Speaker 2: What happened there, well, there is a very small number 75 00:03:10,040 --> 00:03:12,600 Speaker 2: more on the way, so there is more stock coming 76 00:03:12,639 --> 00:03:14,960 Speaker 2: and it will be distributed. It's not I don't believe 77 00:03:15,000 --> 00:03:16,400 Speaker 2: it's going to be able to meet all of the 78 00:03:16,440 --> 00:03:18,880 Speaker 2: demand we've heard about. We have grabbed every single one 79 00:03:18,919 --> 00:03:21,760 Speaker 2: we can in the timeframe that we can. You know, 80 00:03:21,840 --> 00:03:24,520 Speaker 2: this program runs through to the end of August and 81 00:03:24,560 --> 00:03:28,200 Speaker 2: then people can redeem until the middle of September, and 82 00:03:28,280 --> 00:03:30,799 Speaker 2: we've got as many more as we can, so it's 83 00:03:30,800 --> 00:03:33,000 Speaker 2: been unclear. We've been fighting to get this some more 84 00:03:33,040 --> 00:03:35,960 Speaker 2: stock once we saw the level of demand, and that'll 85 00:03:35,960 --> 00:03:37,480 Speaker 2: be why the store was signaling that. 86 00:03:37,760 --> 00:03:39,880 Speaker 1: Is it possible for you guys, because listen, it's twenty 87 00:03:39,920 --> 00:03:42,440 Speaker 1: twenty five, it's the information age. We've got apps and 88 00:03:42,640 --> 00:03:44,880 Speaker 1: you've got collapse and stuff like that. Can you not 89 00:03:44,960 --> 00:03:46,960 Speaker 1: put a real time ticker out there for people with 90 00:03:47,160 --> 00:03:49,000 Speaker 1: literally how much of how many of these things you 91 00:03:49,040 --> 00:03:51,760 Speaker 1: have in the country left ticking down as people take 92 00:03:51,760 --> 00:03:54,120 Speaker 1: them away? So people can know whether they're going to 93 00:03:54,120 --> 00:03:54,760 Speaker 1: get their thing or not. 94 00:03:55,960 --> 00:03:59,200 Speaker 2: Look, we haven't got that ability today. It's an idea 95 00:03:59,200 --> 00:04:01,120 Speaker 2: that we should debate and see whether we can. But 96 00:04:01,280 --> 00:04:03,280 Speaker 2: part of the issue is the item isn't a bar 97 00:04:03,400 --> 00:04:06,200 Speaker 2: coded stock item, so it doesn't run through ond normal systems. 98 00:04:06,600 --> 00:04:08,400 Speaker 2: It's sids, some physical stock in the store. 99 00:04:08,960 --> 00:04:11,080 Speaker 1: Now, well, put a bar code on it. I mean, 100 00:04:11,400 --> 00:04:13,600 Speaker 1: you guys do barcodes. Don't you like you've got to 101 00:04:13,640 --> 00:04:16,040 Speaker 1: solve this, Chris, you can't do this every year. It's 102 00:04:16,080 --> 00:04:18,040 Speaker 1: make I'll tell you what it did to me. I 103 00:04:18,080 --> 00:04:19,840 Speaker 1: looked at it this year and I thought, no, I'm 104 00:04:19,839 --> 00:04:21,360 Speaker 1: not going to bother because I know they're going to 105 00:04:21,440 --> 00:04:22,800 Speaker 1: run out of that thing. You don't want that to 106 00:04:22,800 --> 00:04:23,719 Speaker 1: be how people behave. 107 00:04:25,360 --> 00:04:28,240 Speaker 2: Look, although you know, the evidence clearly is people have 108 00:04:28,400 --> 00:04:31,040 Speaker 2: really got into this way more than we thought, and 109 00:04:31,080 --> 00:04:33,560 Speaker 2: this was the item that needed most because they actually 110 00:04:33,600 --> 00:04:36,080 Speaker 2: needed cash as well, and we thought that will have 111 00:04:36,160 --> 00:04:38,599 Speaker 2: some demand, but not the demand of all the other items. 112 00:04:39,279 --> 00:04:41,320 Speaker 2: Turns out, what people are loving is that it's a 113 00:04:41,320 --> 00:04:43,600 Speaker 2: great item. It's got quality, it's a brand that people 114 00:04:43,680 --> 00:04:47,480 Speaker 2: are proud to have in their houses and seventy thousand. 115 00:04:47,640 --> 00:04:49,320 Speaker 2: You know, I think at the beginning, we all said, men, 116 00:04:49,360 --> 00:04:50,640 Speaker 2: we're going to know what are we going to do 117 00:04:50,680 --> 00:04:53,880 Speaker 2: with the leftover stock? Because every planning indication we had 118 00:04:53,920 --> 00:04:54,800 Speaker 2: we were well covered. 119 00:04:55,040 --> 00:04:57,440 Speaker 1: You're not doing this deliberately, are you for attention? 120 00:04:57,600 --> 00:05:00,520 Speaker 2: No? No, not at all. This is myth. Is not 121 00:05:00,600 --> 00:05:03,440 Speaker 2: the attention we'd love to be getting. We'd love to 122 00:05:03,440 --> 00:05:05,680 Speaker 2: be getting attention from people saying I love my brazier 123 00:05:05,720 --> 00:05:06,839 Speaker 2: and here's another casserole. 124 00:05:07,200 --> 00:05:10,800 Speaker 1: All right, well, borer more next time. Hey, the grocery 125 00:05:10,800 --> 00:05:13,039 Speaker 1: reports come out, it's made the point that you guys, 126 00:05:13,120 --> 00:05:15,560 Speaker 1: food stuffs have had a higher profit percentage than the 127 00:05:15,680 --> 00:05:18,039 Speaker 1: likes of Walmart and Tescos and says, how on earth 128 00:05:18,279 --> 00:05:19,039 Speaker 1: how are you doing that? 129 00:05:20,200 --> 00:05:23,200 Speaker 2: Look, you know, comparison of these things is, you know, 130 00:05:23,440 --> 00:05:26,960 Speaker 2: was a fine art. What we do know, last five years, 131 00:05:26,960 --> 00:05:29,760 Speaker 2: on average, our net profit after tax, which is a 132 00:05:29,760 --> 00:05:32,360 Speaker 2: different number to the number that the commission have used, 133 00:05:32,920 --> 00:05:35,440 Speaker 2: has been three point six cents in the dollar. Everything 134 00:05:35,520 --> 00:05:38,719 Speaker 2: that we have said puts us middle to upper in 135 00:05:38,760 --> 00:05:41,160 Speaker 2: the pack of retailers. We're proud of that. We think that, 136 00:05:41,320 --> 00:05:44,280 Speaker 2: you know, business is being successful by earning customers and 137 00:05:44,320 --> 00:05:47,320 Speaker 2: getting great loyalty and delivering value. Is what we should 138 00:05:47,320 --> 00:05:50,400 Speaker 2: be doing, and it enables us to invest in communities 139 00:05:50,440 --> 00:05:53,000 Speaker 2: all over the North Island that wouldn't be possible otherwise 140 00:05:53,000 --> 00:05:56,800 Speaker 2: if we didn't have the resources. So you know, these 141 00:05:56,839 --> 00:05:59,599 Speaker 2: comparisons are quite difficult to get equal into the bottom 142 00:05:59,640 --> 00:06:02,679 Speaker 2: of a for companies that are listed in some that aren't. 143 00:06:03,680 --> 00:06:06,000 Speaker 2: But what we do know is when we compare our 144 00:06:06,000 --> 00:06:08,880 Speaker 2: prices to Ld in Australia or to Tesco in the 145 00:06:08,920 --> 00:06:12,039 Speaker 2: UK and Pekan save, New Zealanders are getting a great 146 00:06:12,080 --> 00:06:13,400 Speaker 2: value option through a store like that. 147 00:06:13,680 --> 00:06:17,400 Speaker 1: Okay, do you have any idea what Nikola Willis is 148 00:06:17,440 --> 00:06:18,960 Speaker 1: planning for you in her announcement? 149 00:06:20,400 --> 00:06:22,320 Speaker 2: Look, no, we don't, and you know it wouldn't be 150 00:06:22,360 --> 00:06:24,800 Speaker 2: you know, the Minister would never you know, that's they 151 00:06:24,839 --> 00:06:28,320 Speaker 2: wouldn't consult with us. As such, we are positively engaged 152 00:06:28,360 --> 00:06:31,920 Speaker 2: with government where we've shared our ideas about what would 153 00:06:31,960 --> 00:06:34,559 Speaker 2: make food prices cheaper in New Zealand and what would 154 00:06:34,560 --> 00:06:37,120 Speaker 2: help us lower cost so that we can do that 155 00:06:37,160 --> 00:06:40,039 Speaker 2: for our customers. They're listening to that and engaging and 156 00:06:40,080 --> 00:06:43,240 Speaker 2: asking questions and you know we're contributing to the conversation, 157 00:06:43,400 --> 00:06:47,400 Speaker 2: as are manufacturers and suppliers and many other bodies, but 158 00:06:47,520 --> 00:06:48,840 Speaker 2: we don't know what the plan is. 159 00:06:48,960 --> 00:06:50,960 Speaker 1: So I had a couple of guys on the huddle 160 00:06:51,000 --> 00:06:53,880 Speaker 1: earlier who I had thought up to that point were 161 00:06:54,160 --> 00:06:57,760 Speaker 1: quite rational and right thinking, and both of them thought 162 00:06:57,839 --> 00:07:01,240 Speaker 1: that forced structural separation would be a good thing. Now 163 00:07:01,279 --> 00:07:03,680 Speaker 1: if they think that, how worried to you that she 164 00:07:03,720 --> 00:07:05,240 Speaker 1: actually comes out with something like that. 165 00:07:06,720 --> 00:07:09,680 Speaker 2: Well, I can't, you know, we can't limit what the 166 00:07:09,720 --> 00:07:11,800 Speaker 2: Minister thinks and all the ideas are there, but we 167 00:07:11,880 --> 00:07:15,040 Speaker 2: are absolutely clear it's not been done in any other 168 00:07:15,080 --> 00:07:17,760 Speaker 2: market in the world in this category, and hasn't been 169 00:07:17,760 --> 00:07:20,520 Speaker 2: done before in New Zealand in terms of private organizations 170 00:07:20,560 --> 00:07:24,920 Speaker 2: being structurally separated. It will only add cost in this 171 00:07:25,000 --> 00:07:26,760 Speaker 2: scaler market. And I think one of the things the 172 00:07:26,760 --> 00:07:30,600 Speaker 2: Commission confirmed today is in New Zealand's few cities that 173 00:07:30,680 --> 00:07:34,520 Speaker 2: have scale Auckland christ Church places like that, there is 174 00:07:34,560 --> 00:07:37,120 Speaker 2: a good level of competition. So in Auckland, thirty percent 175 00:07:37,200 --> 00:07:40,320 Speaker 2: of the offer is not in the two large players. 176 00:07:41,440 --> 00:07:43,880 Speaker 2: You know that customer is using and so competition is 177 00:07:43,920 --> 00:07:46,760 Speaker 2: emerging and going after the business where they see an 178 00:07:46,760 --> 00:07:50,680 Speaker 2: opportunity to do that sustainably. Is it's so different to 179 00:07:50,760 --> 00:07:53,320 Speaker 2: industries where there's been a monopoly asset. There just isn't 180 00:07:53,360 --> 00:07:57,040 Speaker 2: one in this industry. So structural separation like you might 181 00:07:57,080 --> 00:07:59,680 Speaker 2: do in a telco or a fuel environment just doesn't 182 00:07:59,680 --> 00:08:00,920 Speaker 2: make in from the structure. 183 00:08:01,080 --> 00:08:02,760 Speaker 1: Yeah, well listen, good luck with it, Chris, and thank 184 00:08:02,800 --> 00:08:04,240 Speaker 1: you very much for coming to talk to us. I 185 00:08:04,240 --> 00:08:06,720 Speaker 1: appreciate your time. That's Chris Quinn's CEO of food Stuff's 186 00:08:06,800 --> 00:08:07,360 Speaker 1: North Island. 187 00:08:08,160 --> 00:08:11,320 Speaker 2: For more from Hither Duplessy, Allen Drive listen live to 188 00:08:11,440 --> 00:08:14,480 Speaker 2: news talks it'd be from four pm weekdays, or follow 189 00:08:14,520 --> 00:08:16,280 Speaker 2: the podcast on iHeartRadio.