Monday, September 21, 2009

Paula Bennett, Call Your Office

Look at what the Herald nearly forgot to tell you.

Progressive enterprises are to phase out their Woolworths and Foodtown branded stores over the next five years, at a cost of one billion dollars.

Well, ho hum you might think, as did Adolf. But because I'm bored I read all the way down to the end of the article and bugger me dead, right at the very end, tacked on as an afterthought, was this gem.

"Through its investment, Progressive would create 2000 to 3000 permanent new jobs. It employed more than 18,000 people now."

Would anyone hazard a guess at the headline if the report had read:-

"Through its investment, Progressive would cut 2000 to 3000 permanent jobs. It employed more than 18,000 people now."

My goodness, what are the lefties going to do about this? An evil money grubbing multinational Australian based company investing a billion dollars in NZ to create THREE THOUSAND NEW JOBS?



I will miss Foodtown.
Woolworths less so as the condition of the stores varies.
The one in Kerikeri is awful but the one in Paihia is fine.
Countdown will be a new and novel downmarket experience.

Anonymous said...

Actually I think there is a real boon for the left here. It will mean potential for another 3000 fee paying union members.

Adolf Fiinkensein said...

Naaaah. Progressive will turn all the checkout chicks into independent contractors.

thedeityformerlyknownasnigel6888 said...

really? I mean really? so we close down two brands, and merge into a third, which is the discounter variant and therefore needs less overheads, staff and management structure.

and this leads to MORE jobs?

check those assumptions carefully Adolf, there may be a growth assumption hidden in there too.

Adolf Fiinkensein said...

thedeity, you are making some mighty big assumptions there.

Are you seriously suggesting that Woolworths and Foodtown are NOT discounters?

What's wrong with programming in some reasonable growth? I suggest a 17% increase in staff numbers over five years will likely reflect an intention to increase market share.

Anonymous said...

Just goes to show how FUCKING INCOMPETENT NZ businesses are.

They're merging two competing brands, right?

So you'd expect Half the lazy WFFer working for em to be out on the street --- ideally straight to the gutter, no redundancy, bank forclosses imediately to minimise risk...

But no. Merger is going toincrease costs and decrease efficiency ---


ever single employee of a supermarket is a complete drag on the economy. we should be aiming to reduce the lot with robots and throw the useless unskilled onto the scrapheap - NOT HIRE MORE.


I wonder if we will see a return of the singing and dancing vegetables.
I used to enjoy seeing those at Big Fresh in Hamilton in the mid-90s.
That was another brand Woolworths killed off.

Adolf Fiinkensein said...

Well actually anon, it shows how fucking dumb some commenters are.

They are merging two brands, not two separate businesses.

thedeityformerlyknownasnigel6888 said...

well adolf, I note that the media is saying the reason for doing this is that woolworths and foodtown are seen as the expensive supermarkets (I believe that Consumer has confirmed this). So no,I dont think these are discount supermarkets. They are deliberately choosing to go to a "value" model in order to position between the opposition paknsave and new world.

So yes, I think my assumptions are valid, they are simplifying their offering, and moving to a "value" model as per Coles in Australia.

Hence my view that alone, this is a cost saving and job saving model. Therefore the only logical way you can believe the media release about new jobs, is if there is a growth assumption. Which it seems there is.

Good PR really.

Next lets look at the billion dollars. How much do they normally spend over 5 years in supermarket refurbishments? How much of the billion is normally scheduled capital expenditure?

I'm not bagging them, but I am an admirer of the dark arts of PR, and this looks to be a superb example.

thedeityformerlyknownasnigel6888 said...

(cont)... so the alternative headline of NZ to lose woolworths and foodtown, and go to a single low-price brand to compete with brands XXXXXXXXX.

Company takes big punt that model will work. Uncertainty about jobs, but if new model is popular and successful then it will grown, and probably create new jobs.

Is not such a winning headline?

I predict droves of the middle class head off to New World. Myself. I dont much like countdown, too scruffy, limited range, but good specials.

Adolf Fiinkensein said...

deity, you should learn to read.

The new model Countdown is not the current model. Just a quick look at the photo should have told you that. It is a repeat of a currently successful operation in Australia. Of course, whether it withstands the trip across the Tasman is another story, as the Warehouse found out when going the othger way.

thedeityformerlyknownasnigel6888 said...

its not a photo, its a mock-up adolf, commonly called the sales pitch.

quite often the architects pitch and the boxlike slab built food warehouse arent all that similar - who knew?

Countdown is not a premium brand. Nor is Coles in Australia.

what makes you think that "new countdown" is really going to be any different?

On the other hand, what would I know? I am just a pseudonymous deity, with an over-developed bullshit indicator trading groundless opinions in the comments of an anonymous blogger.

Whats that quote about winning arguments on the internet being like winning gold at the special olympics again?

Carry on that man.

MikeG said...

and this is the company that spent thousands of dollars, if not millions, trying to stop the competition opening a supermarket - what a wonderful example of a multinational business - NOT.