Change, growth

Press, 29 March 1982, Page 13

Change, growth

Dingwall and Paulger, Ltd, began business in 1934. In its early years, the firm acted as representative for some local manufacturers and some agency lines, selling mainly groceries to retailers. Before the days of supermarkets and grocery chains, the majority of grocery outlets were small, independent concerns, privately owned and operated. Their stock was mainly supplied through wholesale firms, each operating out of just a single, large warehouse in any one centre. Between 1934 and 1938, Dingwall and Paulger ventured into importing to help increase the range of goods it could offer, then in 1938, two things happened that were significant for the firm’s development. Firstly, Dingwall and Paulger was registered as an

unlisted public company and, a few months later, import restrictions cut back substantially on many of the lines for which it was increasing turn-over. The short time between the introduction of these import restrictions and the be-, ginning of World War 11, in 1939, gave little chance to adjust to the changed economic circumstances. Faced with a total cut in imported English confectionery, the firm decided to fill the gap by becoming a confectionery manufacturer. This proved effective in maintaining turn-over and trade connections through the war years. By the end of the war, maintenance of the old plant had become an increasing problem. In view of the high cost and output of the new plant then available, and the small size of the New Zea-

land market, the company decided to drop out of manufacturing in favour of more comprehensive wholesaling. Up until the 60s most of this sort of business was obtained by travellers calling on customers for orders, introducing new lines and providing credit as an essential part of the contract. This procedure has since been largely replaced by cash-only, self-service warehousing, with the customer picking his own order from stock set out on fixtures and priced at a reduced rate for cash. Convenience was important to persuade the warehouse customer to become a cash customer. This meant more wholesale outlets, since the self-service warehouse had to be sited so the shopkeeper did not have to travel far or be away from his shop for long. The next challenge for wholesalers took the form of increasing competitiveness and the introduction of

specials as a permanent feature of the grocery trade. To maintain a reasonable share of the market, Dingwall and Paulger made an incursion into retailing with the establishment of “Keystores." The increased pressure of price cutting through the promotion of specials meant that independent comer stores and dairies were disappearing. The company responded by introducing a new concept in retailing, with less emphasis on specials but reduced prices “across the board.” In addition, smaller butmore numerous retail outlets provided greater convenience and easier access for the customers. Dingwall and Paulger, Ltd, was listed on the stock exchange early in 1979, when the directors considered it desirable to provide an avenue for estate shareholders to dispose of their holdings, should they wish to do so.