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NZ’s answer to Amazon out-paces competition

Embargoed: Friday, June 20


NZ’s answer to Amazon out-paces competition

Online shopping expenditure tipped to top $5.37 billion by 2016

New Zealand’s answer to Amazon, Mighty Ape, going head to head with bricks and mortar by offering same day shipping for Wellington, Christchurch and Auckland as at June 20

Company has seen over 30% year on year growth for past 3 years

Mighty Ape has New Zealand’s largest range of in-stock toys, books, homewares, DVDs, Blu-ray and video games (Xbox, PlayStation) and is growing into further markets

With 54 per cent of Kiwis having shopped online in the last 12 months [According to 2013 AC Neilson data – see], there is no doubt e-tail is changing the way people consume.

A PricewaterhouseCoopers consumer insight report [According to PwC’s The future of retail – Consumer adaptive retailing – see] on the future of retail estimated that by 2016 Kiwis will be spending a collective $5.37 billion on online shopping, and savvy e-tail outfits like Mighty Ape are stepping up operations to take the lead in the space.

While lower pricing due to reduced overheads is an obvious side-effect of not having a bricks and mortar store, Mighty Ape cites that its customers also value the breadth of offer but most importantly the benefit of fast delivery without them leaving the couch.

The company is today launching same-day shipping to Wellington and Christchurch (to match Auckland) for orders placed before 1pm on any of its 250,000 in-stock products.

Having full control over the supply chain is the advantage for this local outfit, with international shopping sites such as holding stock in the UK and USA which makes delivery to New Zealand slow.

But it’s not just online stores that are being out-serviced by Mighty Ape. Traditional “bricks and mortar” retailers will face increased competition from Mighty Ape’s same day delivery service.

“The battle has moved on from e-tail versus e-tail, it’s now e-tail competing head to head with almost every proposition that the traditional stores offer. Why battle the traffic, crowds and general admin of the high street when you can simply click and have it delivered that afternoon?” asks Simon Barton, Mighty Ape CEO.

“Our customers love to impulse buy, especially on a Friday afternoon in the lead up to the weekend. We expect our competitors in New Zealand’s shopping malls probably won’t like our new service very much,” continues Barton.

The company has seen massive growth of over 30 per cent for each of the last three financial years, and as a result is in a position to negotiate the same-day terms and guaranteed “cabin-space” for airfreight to the major centres across the NZ Post and Pace service.

“We have chosen to focus on service and customer experience rather than engage in a race to the bottom on pricing. Our pricing is still on par or lower with our competitors, but long-term it is more about leading the online space with innovations like the same-day delivery option now available to over 70 per cent of Kiwis,” says Barton.

According to the New Zealand Retailer’s Association, the largest sectors in online retail are clothing, books, music & DVDs and toys, all categories Mighty Ape operates heavily in. Top brands sold through the site include Microsoft, Sony, Lego, Logitech, Jamie Oliver kitchenware and AS Colour clothing.

Mighty Ape’s same day service launches on Friday 20 June. The service costs $8.90 in Auckland and $11.90 in Wellington and Christchurch. Over 250,000 best-selling products in Mighty Ape’s catalogue are held in stock and eligible for same day delivery.


About Mighty Ape

Mighty Ape is a privately owned New Zealand company. Majority shareholders include CEO Simon Barton and his wife Vicki along with TradeMe founding shareholder Nigel Stanford. It employs 80 fulltime staff fulfilling orders across Australasia.

The company holds more physical stock than any New Zealand retailer, boasting over 250,000 in stock products in its 6,000 square metre distribution centre across 15 categories, including books, DVDs, toys, homewares, games, computers and electronics.

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