Economics forces market into barn

Press, 1 December 1987, Page 2

Economics forces market into barn

The rising costs of electricity, maintenance and other services have forced the end of the small, old-fashioned supermarkets, according to the regional manager of Woolworths Supermarkets in the South Island, Mr John Maze. Mr Maze said that competitiveness in the food retail industry in New Zealand meant that to remain profitable, supermarkets had to change in one of two ways — they could enlarge to become a superstore, with emphasis

on service and range of goods, or they could opt for the bam concept. Speculation surrounded the sudden closing of the Sydenham Woolworths last week, almost 25 years to the day since it opened in 1962.

This followed closely by the closing of the Woolworths supermarket in Riccarton and another in Invercargill. “The days of the old supermarket are gone,” said Mr Maze. “You can’t drive the range through to make them profitable.

A supermarket has a service life of about 25 years.”

L. D. Nathan have now opened its first New Zealand Super Barn on the Sydenham premises. Mr Maze said the barn was based on a "no frills” concept with a limited range of competitively priced groceries for the bargain hunting public. Regular shoppers who are used to the quiet atmosphere of the old Woolworths may be a little bemused by the superbarn, but the first day of business yesterday was described as “extremely busy,” leaving the shop assistants exhausted.