Postie’s Pricing Revolution Makes Quality Affordable

Media Release Embargoed until Thursday 14th April: 00:01 GMT

Postie’s Pricing Revolution Makes Quality Affordable for Kiwis

Every New Zealander deserves good quality clothing at affordable prices, but the rising cost of living has meant that many Kiwis have had to choose price over quality.

Now, one of the countries longest standing retailers Postie Plus, is reinventing its pricing model to reframe value for Kiwi shoppers and set a new benchmark for quality at affordable prices.

The Postie pricing revolution heralds a new age of ‘Responsible Retailing’ putting the consumer firmly back in the driving seat where they no longer have to choose between quality or value.

Founded on the West Coast in 1909 and built into a large retailer by the Dellaca family, Postie has always been a cornerstone of the New Zealand high street.

Global retailer Pepkor, acquired Postie Plus from voluntary administration in July 2014.

65 of the 82 stores were retained and over 500 staff kept their jobs.

Since that time, Pepkor has made a significant investment into the turnaround of the business.

With a solid platform now in place, Postie is launching its pricing revolution and will re--ticket over one million garments with lower prices, resulting in a big win for Kiwi shoppers.

The outcome will be prices that are set according to customer affordability not retail margin, making quality affordable for Kiwis.

New Zealand’s rising cost of living continues to put a squeeze on Kiwi’s household budgets with household utility prices up 2.8 percent and housing rentals up 2.5 percent in the last quarter of 2015.

The average New Zealand family has just $31.60 to spend on clothing and footwear each week, meaning that keeping the whole family warm and dry over the winter months can be a real challenge.

Because of this over 70% of all products in the Postie range will be under $30.

Jason Murray, South East Asia Managing Director for Pepkor says that for too long New Zealanders have been forced to believe they can either have a quality garment or a good price, but not both.

“We think that it’s time for that to change so we’re making it happen for Kiwis with our new Responsible Retail model.

Typically, Kiwi consumers on a budget have to buy cheap clothes in big box, multi--category retailers with no service, or they can look for discounted items in better quality chains.

Now, Postie customers don’t have to choose between great quality and great prices – they can have both, everyday."

Murray continues, “Underpinning Postie’s great quality and prices is a robust supply chain that leverages Pepkor’s global brands and vendor base, that works closely with our centralised sourcing office in China and that operates to a strict code of conduct."

“Responsible Retail also means giving back to the community so as part of this initiative we will be launching the Postie Community Trust, which will raise funds that can be directed back into communities where they are needed most”, he concludes.

Already a supporter of Kids Can, Dress for Success, Migrante Aoteroa and Earth Action the new Postie Community Trust will see the retailer providing assistance to many more Kiwis in need.

Access to the retail expertise, global buying power and financial resources of Pepkor, has allowed Postie to reduce overall prices by 30%, with 70% of apparel now under $30 per item, while maintaining the great quality for which they are known.

Linda Leonard, Postie’s Merchandise Director comments, “Essentially we’re taking the price of a garment at the end of the season and starting with it at the beginning of the season when our customers need it the most.

With a winter essentials wardrobe for a family for four coming in at $370, Postie prices mean Kiwi families can afford to stay warm and dry this winter."

Some of the new pricing initiatives include: High quality kid’s winter thermals retailing from just $6.

This compares to $12 previously and up to $15 in the general market 100% wool Merino cardigans at $25, 36% cheaper than Postie’s price last winter and arguably the best value in New Zealand Kid’s flannel PJ’s at $10, down 50% from last winters price of $20 Revolutionising retail in New Zealand by reducing their profit margins and basing pricing around customer affordability, Postie’s new ‘Responsible Retail’ model is a big win for Kiwi shoppers, who no longer have to choose between price and quality.

Notes to Editor: Postie is the first New Zealand investment for Pepkor, which has been trading since 1965 and boasts more than 3,000 clothing, textile and footwear outlets across Australia, Africa and Eastern Europe with more than $4 billion in annual sales.

Pepkor is a subsidiary of Steinhoff International, listed on the Frankfurt stock exchange and owner of Freedom NZ.

Cost of living data taken from taken from Statistics NZ Consumers Price Index: December 2015.

Next CPI results available 18th April 2016 http://www.stats.govt.nz/browse_for_stats/economic_indicators/CPI_inflation/Cons umersPriceIndex_HOTPDec15qtr.aspx Average weekly household clothing spend taken from Statistics NZ Household Economic Survey year ended June 2013.

Next survey results available May 2016.

http://www.stats.govt.nz/browse_for_stats/people_and_communities/Households/ HouseholdEconomicSurvey_HOTPYeJun13/Commentary.aspx

ENDS

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