Progressive may be counting down

Supermarket operator Progressive Enterprises says a decision is not imminent on rolling its three brands into one.

"But we are always reviewing how each brand is serving its community in order to ensure we are providing the right offer," managing director Peter Smith said.

He was responding to a report in the Independent Financial Review which cited a report from Macquarie Research Equities in Australia.

The report said Progressive owned by listed Australian retailer Woolworths was planning to convert its Woolworths and Foodtown brands in New Zealand to Countdown.

In Australia, Woolworths is following a brand consolidation strategy.

Tim Morris, of retail research company Coriolis, said that when Woolworths bought Progressive three years ago many people expected them to rebrand all of the supermarkets as Woolworths.

"But when they did their research they found that Woolworths was not a strong brand in Auckland and had an association with being the highest-priced supermarket in New Zealand," he said.

Progressive has converted two of its stores its flagship Greenlane store in Auckland and one at Botany Downs into Countdowns.

It was positioning the Countdown brand somewhere between the budget Pak 'n Save and the more upmarket New World both brands of its rival Foodstuffs, Mr Morris said.

With nearly 150 supermarkets nationwide, even at a rate of 15 supermarkets a year, it would take Progressive about a decade to totally rebrand to Countdown, he said.

Early this week, Progressive announced plans to spend up to $200 million a year on new supermarkets and refurbishments in the next five years.

The Progressive Woolworths, Countdown and Foodtown supermarkets employ more than 19,000 people.

Its market share of 40-plus per cent ranks it a long way behind rival and leading supermarket co-operative chain Foodstuffs.

- © Fairfax NZ News