1 00:00:00,080 --> 00:00:02,840 Speaker 1: Good afternoon. Finally, after all the waiting and the traffic 2 00:00:02,880 --> 00:00:05,840 Speaker 1: warnings and the excitement, Ikea has opened in Auckland, and 3 00:00:06,040 --> 00:00:09,120 Speaker 1: given how much we fizzed for it, analysts are expecting 4 00:00:09,160 --> 00:00:11,680 Speaker 1: it's going to have quite an impact on retail in 5 00:00:11,720 --> 00:00:14,920 Speaker 1: New Zealand. Paul Karawa is a retail analyst at full 6 00:00:14,960 --> 00:00:17,960 Speaker 1: Scythe by High Paul Hi, Paul, has it been a 7 00:00:17,960 --> 00:00:20,599 Speaker 1: successful launch day or a little bit disappointing given the 8 00:00:20,680 --> 00:00:23,280 Speaker 1: numbers who actually turned up after all that hype? 9 00:00:23,720 --> 00:00:25,799 Speaker 2: Yeah, I think because of all the hype, a lot 10 00:00:25,840 --> 00:00:28,760 Speaker 2: of people have steed away from going and missing the 11 00:00:28,840 --> 00:00:31,640 Speaker 2: cow today. I think the real tell tale sign will 12 00:00:31,680 --> 00:00:33,400 Speaker 2: be how it performs through the weekend and in the 13 00:00:33,479 --> 00:00:37,280 Speaker 2: lead up to Christmas. And so while maybe we haven't 14 00:00:37,280 --> 00:00:38,640 Speaker 2: seen the numbers that we thought we were going to 15 00:00:38,680 --> 00:00:42,519 Speaker 2: get today, I think it's going to show over the 16 00:00:42,600 --> 00:00:44,400 Speaker 2: next few sort of weeks. 17 00:00:45,800 --> 00:00:47,960 Speaker 1: The six percent of the market that you'll pretare of 18 00:00:48,000 --> 00:00:50,080 Speaker 1: the retail market that you're predicting it's going to take 19 00:00:50,120 --> 00:00:52,680 Speaker 1: seems quite a big number for something that's just started. 20 00:00:53,760 --> 00:00:57,480 Speaker 2: Yeah, socent of the sort of industries that they play in. 21 00:00:57,480 --> 00:00:59,760 Speaker 2: And so this is in the home furnishing sort of 22 00:00:59,800 --> 00:01:01,960 Speaker 2: my department store market and this comes from stats to 23 00:01:01,960 --> 00:01:04,760 Speaker 2: New Zealand and the number of the actual number on 24 00:01:04,800 --> 00:01:06,880 Speaker 2: that was one hundred and nineteen million. That's sort of 25 00:01:06,880 --> 00:01:09,640 Speaker 2: what we thought IKEA was going to do and the 26 00:01:09,680 --> 00:01:11,559 Speaker 2: way we think about it, as you know, the thirty 27 00:01:11,560 --> 00:01:14,360 Speaker 2: four thousand square meter store, based on some of the 28 00:01:14,360 --> 00:01:17,640 Speaker 2: sales denities that they run in Australia, their sales per 29 00:01:17,640 --> 00:01:19,440 Speaker 2: square meta, you can sort of back up where you 30 00:01:19,440 --> 00:01:21,760 Speaker 2: think it's going to it's going to fall out. And 31 00:01:21,880 --> 00:01:24,120 Speaker 2: I think based on some of the feedback we've got 32 00:01:24,160 --> 00:01:26,840 Speaker 2: from some people who work there, that that number seems 33 00:01:26,840 --> 00:01:28,600 Speaker 2: to be in and around the right number. 34 00:01:29,240 --> 00:01:31,800 Speaker 1: Yeah, and did you see the warehouse has already started 35 00:01:31,840 --> 00:01:32,800 Speaker 1: hustling hard today. 36 00:01:33,880 --> 00:01:35,480 Speaker 2: I have not seen it. No, I haven't. 37 00:01:36,680 --> 00:01:38,559 Speaker 1: It is it is quite a thing to watch, Paul. 38 00:01:38,560 --> 00:01:40,400 Speaker 1: But I mean this would be an indication, This would 39 00:01:40,400 --> 00:01:44,160 Speaker 1: be a sign, wouldn't of how ike will impact competition? 40 00:01:45,040 --> 00:01:48,160 Speaker 2: Yes, No, absolutely. I think it's a good thing for 41 00:01:48,200 --> 00:01:50,520 Speaker 2: the end consumer because a lot of these retailers are 42 00:01:50,520 --> 00:01:53,440 Speaker 2: going to be working on their products, working on their pricing, 43 00:01:53,480 --> 00:01:56,080 Speaker 2: working on their ranging to you know, when what they 44 00:01:56,120 --> 00:01:58,000 Speaker 2: believe is their fair share of the market, and you know, 45 00:01:58,080 --> 00:01:59,960 Speaker 2: the upshot for the consumers, you're going to have access 46 00:02:00,520 --> 00:02:04,160 Speaker 2: the better prices, better products and you know, more affordable 47 00:02:04,640 --> 00:02:07,840 Speaker 2: range of goods. So you know, watching this competition happen, 48 00:02:07,960 --> 00:02:09,600 Speaker 2: I think will be a good thing for New Zealand. 49 00:02:10,200 --> 00:02:13,000 Speaker 1: Now do you see IKEA opening in New Zealand as 50 00:02:13,000 --> 00:02:15,639 Speaker 1: a sign of success that they see a market here, 51 00:02:15,639 --> 00:02:18,120 Speaker 1: that they see enough buying power here to come and 52 00:02:18,200 --> 00:02:18,839 Speaker 1: establish here. 53 00:02:19,600 --> 00:02:22,000 Speaker 2: Yeah, absolutely, I think it's the market that they've been 54 00:02:22,040 --> 00:02:25,359 Speaker 2: looking at for a while. I think, you know, understanding 55 00:02:25,400 --> 00:02:27,840 Speaker 2: how you know, the New Zealand market sort of operates, 56 00:02:27,840 --> 00:02:29,560 Speaker 2: they've been working on for for a long time and 57 00:02:29,600 --> 00:02:32,359 Speaker 2: so they actually into a number of New Zealand households 58 00:02:32,360 --> 00:02:34,120 Speaker 2: to figure out, you know, the sort of products that 59 00:02:34,600 --> 00:02:37,320 Speaker 2: New Zealand consumers think they're under serviced in where they're 60 00:02:37,320 --> 00:02:39,760 Speaker 2: not getting the right price on certain products, and that's 61 00:02:39,760 --> 00:02:41,600 Speaker 2: sort of what they've been focusing on. So their engine 62 00:02:41,639 --> 00:02:43,359 Speaker 2: is actually a little bit smaller than that you might 63 00:02:43,400 --> 00:02:46,639 Speaker 2: see in another country, but they've really brought the things 64 00:02:46,680 --> 00:02:49,120 Speaker 2: specialized to what they think that keries need. And I 65 00:02:49,120 --> 00:02:52,000 Speaker 2: think the other interesting point is that they've actually opened 66 00:02:52,040 --> 00:02:54,880 Speaker 2: up nationwide distribution from day one, and this is something 67 00:02:54,919 --> 00:02:56,880 Speaker 2: that you know they don't typically do when they open 68 00:02:56,919 --> 00:02:59,760 Speaker 2: into a new market. But understanding how excited Quiris, not 69 00:02:59,840 --> 00:03:02,480 Speaker 2: just in Auckland are about the opening of our care. 70 00:03:02,880 --> 00:03:05,720 Speaker 2: They've made it accessible for everyone to caution zill and 71 00:03:05,760 --> 00:03:07,240 Speaker 2: to have access to these products. 72 00:03:07,520 --> 00:03:10,000 Speaker 1: Yeah, Paul, listen, Thanks very much for talking user Paul Karrawa, 73 00:03:10,080 --> 00:03:13,320 Speaker 1: who's the full soyth Bar retail analyst. For more from 74 00:03:13,360 --> 00:03:16,639 Speaker 1: Hither Duplessy Allen Drive, listen live to news talks they'd 75 00:03:16,680 --> 00:03:20,760 Speaker 1: be from four pm weekdays, or follow the podcast on iHeartRadio.