Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Countdown supermarket chain grabs more market share

Countdown supermarket chain grabs more market share in first half

By Suze Metherell

Feb. 28 (BusinessDesk) – Australian-owned New Zealand supermarket chain Countdown boosted first-half earnings as it nabbed market share and customer numbers in what it says is a subdued environment.

Countdown’s earnings before interest and tax rose 1.3 percent to $164.4 million in the 27 weeks ended Jan. 5 with sales up 2.6 percent to $3.02 billion, its ASX-listed owner, Woolworths, said in a statement. In Australian dollar terms, earnings before interest and tax rose 9.7 percent to A$136.8 million and sales were up 15 percent to A$2.67 billion, assisted by a favourable exchange rate for converting New Zealand to Australian dollars.

“We continued to increase market share, customer numbers and items sold, reflecting the relevance of our offer and success of promotional activity,” the company said. “This was despite the subdued grocery market conditions, highly competitive marketplace and price deflation across a number of key categories.”

The Countdown chain has been accused of anti-competitive and corrupt behaviour by Labour MP Shane Jones under the cover of Parliamentary privilege. The Commerce Commission is formally investigating the claims, which it says will take a number of months.

Countdown has previously said it will cooperate fully with the inquiry, though Woolworths made no mention of the action in today’s announcement and accompanying releases.

The grocer is now New Zealand’s largest supermarket chain, and continues to expand, opening two new stores in the reported period and plans to open a further five stores by the end of the financial year. It also intends to continue to reduce prices in New Zealand, according to presentation slides accompanying the release.

The Woolworths group reported net profit growth of 5.8 percent, to A$1.3 billion, beating guidance given, and marginally increased its annual forecast profit growth to between 5 percent to 7 percent on last year. Group sales grew 6 percent to A$31.8 billion in the half year under review.

Woolworths owns several Australian retailers, including the eponymous supermarket and petrol stores, retailer BIG W, clothing catalogue EziBuy, Masters hardware chain, and alcohol store Dan Murphy’s.

The ASX-listed shares were recently down 2 percent to A$35.68.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news