New Zealand's Largest Grocery Group

Press, Volume CVI, Issue 31166, 16 September 1966, Page 8

New Zealand's Largest Grocery Group

r pHE Good Housekeeping Bureau, Ltd. (G.H.8.), is a nation-wide organisation; a partnership of grocery wholesalers and retailers who have joined to form New Zealand’s largest grocery group.

Their object is to work together to protect independent grocers’ interests, to promote their advancement in every possible way, and to increase their profits.

Every member of the group has complete trading freedom, and he benefits from the buying privileges associated with membership.

From 350 in 1952, G.H.B. membership had grown to over 1600 by 1966, 16 years after the foundation of the group.

The Good Housekeeping Bureau began in Wellington in 1950. For some time, several Wellington wholesale merchants had been studying the operation of the groups and chains that existed in New Zealand, and they came to the belief that faults existed in both systems.

They combined what they believed to be the best points in each, and produced a plan which offered independent retailers membership in an entirely new type of grocery group for New Zealand.

In this group they could obtain all the advantages of buying, advertising, group identification and other benefits without being involved in a heavy financial commitment to the group. The cost of membership to each grocer has been held at £2 a month. Until November, 1958, G.H.B. was supported entirely by the merchants. But some of the retailers felt that more advertising was necessary than the funds allowed, so they began to contribute to G.H.B. expenses. This practice became firmly established and merchants and retailers now have an equal say in policy matters. Unlike co-operative grocery groups which are supported by independent grocers who each have a share holding in the group, G.H.B. is an organisation supported by a number of limited companies, who hold the shares. Independent grocers are not obliged to have shareholdings. G.H.B. grocers benefit from group discount on bulk buying from- grocery manufacturers, and are able to pass, on this saving to the public by way of reduced prices. The organisation also offers individual grocers a means of advertising at a low cost by the pooling of resources. It can advise grocers on merchandising, marketing, shop

layout, and shop equipment such as cash registers, scales and refrigerators. The cost to the grocer of painting and signwriting is subsidised by G.H.B. and members are kept up-to-date with trends in the trade and organisation news by regular news and marketing bulletins.

Regular advertising has made the G.H.B. name a familiar one in New Zealand.

The group’s advertising is based on intensive radio and television coverage and large space advertising in all metropolitan and local newspapers. as well as regular advertising in trade and consumer publications. A variety of store sales aids, such as window banners, are also used.

This advertising is mainly devoted to the “specials” programmes, but the competitions which are held at regular intervals also receive intensive advertising. In all centres. G.H.B. is controlled by Retail Representation Committees. Members of these committees are elected by vote at the annual general meetings. Many committee members also serve on local and national Master Grocers’ Executies.

There are 30 G.H.B. merchants in New Zealand, and they offer their services to grocers through 56 outlets in 23 centres. These centres are: Auckland, Blenheim, Christchurch, Dannevirke, Dunedin, Greymouth, Gore, Hamilton, Hastings. Hawera, Hokitika, Invercargill. Masterton, Napier, Nelson, New Plymouth, Oamaru, Palmerston North, Timaru, Waipukurau, Wanganui, Wellington, and Westport.