Archive of Past News
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Past News Stories |
Thursday, March 29, 2007
"An analyst says the book retail market is buoyant, despite Borders putting its New Zealand stores up for sale. Last week, the US-based Borders Group announced it would offload its operations in New Zealand, Australia and Britain. Tim Morris, managing director at Coriolis Research, which monitors the retailing market, says the book and newsstand sector in New Zealand is doing well. Mr Morris says he suspects a private equity buyer will snap up the Australasian Borders business."
Monday, February 12, 2007
Four
years after it was published, we have released our Foodservice
2003: Inside the Kitchen report to the public. As we said at the
time: "After fifty-five in-depth interviews with chefs and owner
operators across New Zealand, the report the foodservice industry has
been waiting for is now available! With $4.6 billion in turnover and
$1.8 billion in purchases, foodservice in the New Zealand isn't a sector
your company can afford to ignore." We specialise in Foodservice
research. Please contact us if your company
is interested in further research in this growing area.
Tuesday, January 30, 2007
Coriolis
Research recently worked with Innomarc Consulting on a report for the
New Zealand Pipfruit Industry to help develop an industry strategy.
The report - titled "Smarter,
Faster, Better" - was commissioned by Pipfruit New Zealand
with the support of the Ministry of Economic Development. The overview
report is available
here. For the true apple enthusiasts and train spotters among our
readers, our complete 271 page appendix report - slides from which appear
in the overview report - is available on application from Pipfruit
New Zealand.
Thursday, January 18, 2007
"Meanwhile,
a market analyst says the battle between rival
supermarket giants for control of The Warehouse, is all about real estate.
Tim Morris of Coriolis Research, says if Woolworths
bought Warehouse sites, it could dodge lengthy Environment Court challenges,
from rivals trying to block
stores at new locations."
Saturday, December 23, 2006
"The
Warehouse is developing 15 supermarkets within some of its 85 stores
under The Warehouse Extra name over five years. It has already opened
two, at Auckland's Sylvia Park and in Whangarei. If its proposal proceeded,
Foodstuffs would develop The Warehouse's supermarket business plus new
grocery and general merchandising approaches. Tim Morris, a food industry
analyst at consulting and research firm Coriolis Research, said New
Zealand had the most consolidated, concentrated supermarket industry
in the world. "In a duopoly like that, what's in the best interests
of the consumer? More competition," Mr Morris said. "So The
Warehouse going down the path that it's committed to, which is getting
into food, is bringing needed competition to the market."
Wednesday, November 15, 2006
The global meat industry is currently in a state of flux and changing rapidly. This case study, prepared for the Monash University Meat Executive Program, looks at Smithfield Foods, which is both a leader - growing at a CAGR of 22.2% over the past decade - and the best example of how and why change is happening. With both Australia and New Zealand being major meat exporting countries, this report should be of interest to many of our readers.
Tuesday, September 26, 2006
Love them or hate them, Starbucks have rapidly grown from one store in Seattle, Washington in 1986 to over 10,000 stores worldwide and US$6.4b in sales today. This case study, prepared for the Monash University Food Executive Program, attempts to explain the drivers of Starbucks phenomenal growth.
Wednesday, June 7, 2006
" The Warehouse Group has achieved strong sales growth, primarily driven by the New Zealand "Red Shed" discount operations. However, with the sale of the Australian business and stalling growth at Warehouse Stationery, The Warehouse "Red Sheds" are now left as the only remaining engine of meaningful sales growth for the group... Read more from our latest newsletter here.
Sunday, June 4, 2006
"There's this vision that they can go there. It's the last big avenue of growth for them," said Tim Morris, director at retail specialist Coriolis Research.
He said the hypermarket had worked well in the US, Canada and in the UK, where Tesco Extra dominates. Both the Whangarei and Te Rapa Warehouse stores have been built
with a similar floor plan to the Wal-Mart supercentre, with the food aisles running perpendicular to the general merchandise aisles." Read the rest of the article here.
Thursday, June 2, 2006
A paper prepared for State Owned Enterprises Minister Trevor Mallard in response to the Treasury paper on using State Owned Enterprises as mechanisms to promote economic growth (try saying that three times), uses data developed by Coriolis for the Food & Beverage Taskforce:
"There is no comprehensive profile of the ownership of large and mid-sized New Zealand companies, but one indicator of scale and ownership is that compiled by Coriolis Research in relation to the food and beverage sector. One company - Fonterra - accounts for forty percent of sector revenue, the top ten account for two-thirds and the top thirty a massive 85 percent of the total."
Sunday, May 14, 2006
"At almost $1.71 a litre for unleaded, filling up the petrol tank is getting scary for consumers...
Tim Morris, Managing Director at Coriolis Research, which monitors the retail market, warned supermarkets will have to put up their food prices to subsidise the discount petrol prices. "There's no such thing as a free lunch."
He said the New Zealand supermarket scene was quite different from Australia's, where the chains operated by Coles and Woolworths were very similar. Here the people who shop at Pak'n Save and those who shop at Foodtown are very different in terms of income and price sensitivity. Will loyal Foodtown shoppers go to Pak'n Save simply because of the slight discounts they can get on petrol? Unlikely, said Morris.
Another point for retailers thinking of offering the discount schemes is that it might be better to link up with a chain of petrol stations nationwide. "People get their petrol on the way home; it must be easy to get in and out; most supermarkets don't necessarily fall into that category.""
For the record, the actual quote was "As Milton Friedman said: "There is no such thing as a free lunch.""
Tuesday, April 30, 2006
The Meat Industry Association of New Zealand really, really didn't like the conclusions in our recommendations document presented to the Food & Beverage Taskforce. Their strongly worded response is available here. Our partners have done a lot of work in the global meat industry over the years and we stand by our conclusions that the New Zealand meat industry is a "backwater" "producer of low cost commodities" financed by "non-rational capital." However, like the MIANZ, we would like to see the industry succeed.
Tuesday, April 18, 2006
"The Warehouse has fired its first shot in the battle for New Zealand's $1 billion-plus
take-home liquor market, opening a beer and wine outlet in one of its Tauranga stores... Tim Morris, Managing Director of grocery industry research company Coriolis Research, said he
expected The Warehouse to start in-store beer and wine outlets quite quickly. "There are a lot of independents and not a lot of strong chains in the liquor sector, which must make it attractive to a major retailer like The Warehouse who can bring in chain discipline, buy in bulk and push it through its distribution system. They've got good control over most of their sites so I would expect them to roll it out quite quickly."
Thursday, April 6, 2006
They sure love us at Radio New Zealand. Again today they featured a brief interview with Coriolis Research Managing Director Tim Morris on the changes in the department store sector and the recent poor results report by Kirkcaldie & Stains. Great quotes from the interview include: "Department stores are going the way of the dinosaur," which is no news to anyone in the industry or familiar with Professor McNair's famous wheel of retailing concept from 1931.
Wednesday, March 15, 2006
Radio New Zealand's Morning Report featured an interview with Coriolis Research Managing Director Tim Morris about the recently announced moves of The Warehouse to enter the grocery market. In case you missed the news, the Warehouse intends to open The Warehouse Extra, in an obvious combination of Tesco's Extra name and Wal-Mart's Supercenter store format. Readers of our newsletter will know this is old news and a subject we first covered in October 2003.
Wednesday, February 1, 2006
Radio New Zealand's Morning Report featured an interview with Coriolis Research Managing Director Tim Morris about our recently completed report for the Government's Food & Beverage Taskforce. However, the interview focused on the "relatively minor" issue of 37,600ha/year of agricultural land going into lifestyle blocks - a fact that came from research available here - rather than many of the more serious issues raised by our report. If you haven't already, please be sure to read the Taskforce's discussion paper here and fill in the questionaire available here.
Monday, December 12, 2005
"The objective of this
document is not to give answers. We all know the answers. Listen at
every industry conference, read every industry body’s strategic plan,
analyse every company’s annual report. Its all there – innovate, add
value, enter new markets, grow sustainably, and ultimately create wealth
and employment.
Rather this is a document of questions. How is our food industry doing?
What are we making? Where are we selling it? Is this a growth market?
These are vitally important questions because this country is still,
in many ways, a country built on the sheep’s back (and the cow’s teat).
So we need to get this right.
So how are we doing?"
Read the complete
313 page Mapping
the Structure of the New Zealand Food & Beverage Industry report
here. You may want to right click and choose "save as..."
as the report is very large. This report was commissioned by the
New Zealand Government's Food & Beverage Taskforce.
In addition, you may want to read
the recommendations
document. Please be sure to read the Taskforce's discussion
paper here
and fill in the questionaire available here.
Monday, November 28, 2005
"Whether
the traditional pharmacy remains the most preferred destination for
the buying of cosmetics, toiletries and pharmaceuticals, depends on
how they develop and evolve their offer, says Tim Morris of fast-moving
consumer goods (FMCG) market research company Coriolis Research. "The
offer chemists make in New Zealand is narrow and quite poor. In fact,
the offer is abysmal; the price is wrong and the range is wrong, and
many just aren't good retailers... they need to get their act together..."
Read the rest of the article from the November issue of New Zealand
Retail magazine here.
Friday, November 25, 2005
We've
released the latest edition of our very popular "Overview
of Private Label in Australia 2005" With all the moves going
on in the Australian market, this should continue to be one of our most
popular downloads. Download the report here
or on our research page.
This report,
and our previous report "Towards
Private Label Success," were recently presented at the Monash
Food Executive Program in Australia.
Thursday, August 4, 2005
Today
is the 75th anniversary of the supermarket. Happy Birthday old
man!
On
August 4, 1930, Michael Cullen opened the first King Kullen “supermarket”
in a sprawling former garage in Jamaica, Queens. At 6,000 square feet,
the store would be modest by today's standards, but it was five times
the size of its competitors. It offered no credit, no delivery and ample
parking. Customers drove to the store in their new automobiles from
a wide trading area and used the car to carry their "stock-up" shop
home... history
Saturday, July 23, 2005
Thursday
night is shopping night, but Matt Philp is looking for something morein
his supermarket. The supermarket keeps its specials at eye-level and
its business secrets buried deeper than the Masons. I'd been warned.
John Corbett, the editor of Grocers' Review, had sighingly described
the industry's attitude to scrutiny as "North Korean". On a Thursday
night at one of Christchurch's busiest supermarkets, I experience the
paranoia first-hand... article
Tuesday, October 26, 2004
SwissInfo has an excellent article on the likely impact of the imminent arrival of German discounters Aldi and Lidl on Swiss supermarket retailers. With Aldi going from strength to strength in Australia and developing a land bank of sites in New Zealand, there are a lot of important parallels for the Australasian market.
While the initial reaction of Australian retailers to the arrival of Aldi was confused and contradictory, we expect New Zealand'stwo supermarket groups to react more in line with global best practice. Pak'N Save's recent range reduction moves are probably only the beginning of a series of moves that will have wide ranging implications for the New Zealand industry.
While it is out of date, our May 2000 report on Aldi is a good place to start understanding this fascinating retailer. We are also available to discuss your Aldi strategy.
Tuesday, October 19, 2004
Just a few years ago private label was the unwanted redheaded stepchild of Australian supermarket retailing. "Australian consumers don't want store brands" and "Australia isn't the United Kingdom" were commonly heard refrains from retailers and manufacturers.
Well times have changed. Coles recently announced plans to achieve 30% private label penetration in three years. Not to be outdone, Woolworths announced a range of 200 premium store brand products. In addition, Metcash and FAL are both talking about 20% private label penetration within "the next few years."
With all this sudden attention, we thought it was time to review the situation. Our new report, An Overview of Private Label in Australia, is available for download. This report makes a number of assumptions about the readers understanding of the "theory" of private label and should only be read in conjunction with our 2002 report, Towards Private Label Success. Both reports are over a megabyte in size. Right click on these links and choose the "Save Target As" option to get your own copy.
Both reports were recently presented at the Monash Food Executive Program in Australia.
Friday, September 3, 2004
It's official! Two months after we told you about it, Bob Nelson, Costco's Vice President of Finance and Investor Relations confirmed in an interview with Dow Jones today: "We've had someone in the country for two years researching the opportunity to come to Australia... We're still doing our homework... if it happens, it won't be in the next year." Our projections remain mid-to-late 2005. Later in the interview, he added: "It will be a great business for us," a statement with which we wholehartedly agree.
Tuesday, July 20, 2004
A number of magazines and newspapers have picked up on our newsletter and our report on the arrival of Costco in Australia.
As an example, read the article from last weeks Foodweek here.
The report is proving very popular, but if you are still sitting on the fence, please remember: "If you find that our report doesn't deliver on real value for your business, we will happily refund your investment."
Monday, July 19, 2004
"In 1992 the British supermarket chain Tesco faced a situation similar to that faced by many retailers around the world - a low growth , low inflation home market full of strong competitors. Tesco then put on a dramatic growth spurt, growing at double digit rates for the past decade. This case study identifies the three key elements of Tesco's strategy that allowed the company to not only achieve this impressive growth, but also fight off the arrival of Wal-Mart in the United Kingdom market..."
Download the Tesco - A Case Study in Supermarket Excellence here or on our research page.
Thursday, July 1, 2004
"Costco have global turnover of US$42.5 billion across 430 stores in seven countries around the world. Their average store has sales of US$2 million per week - about $2.9 million Australian - or about eight times the average Australian supermarket. Their stores are massive boxes, averaging about 11,000 square metres, located in secondary sites or industrial areas..."
Read more about the arrival of Costco in Australia and New Zealand in our latest newsletter here.
Find out about our 314 page report on Costco here.
Wednesday, May 26, 2004
The latest issue of Unlimited Magazine has picked up on the story from our newsletter on the growth of Asian supermarkets.
Read the article from Unlimted here...
If you don't already, you can find out how to subscribe to our newsletter here..
Thursday, April 29, 2004
"I'm lovin' it, you're lovin' it, we're all lovin' it. We're lovin' it more than ever with New Zealanders spending 16 per cent more in 2003 on fast food than they did in 2002.
But most retailers agree that, unlike the food they sell, business is not slick and easy. It's a rapidly changing market in which the dining out dollar is being stretched across an evergrowing smorgasbord of fast food choices.....
Read the article from the lastest edition of New Zealand Retail about fast food here..
Friday, April 2, 2004
"The Asian-ification of New Zealand cuisine will be the defining trend in the food industry over the next twenty years. In 1991, there were about 100,000 Asians in New Zealand - by 2021 there will be over 600,000."
According to ACNielsen, there were 361 "key account" supermarkets in New Zealand as of June 2003. Yet according to Statistics New Zealand as of March 2003 there were 445 supermarkets in New Zealand. That's 84 missing supermarkets! A supermarket seems like a large thing to go missing - where are these stores? From our research, we believe that most of these 'other' supermarkets are in fact stores specialising in servicing an Asian clientele.
For more about the implications of the rapid growth of Asian supermarkets read the latest Chartwatch Newsletter...
Thursday,
January 15, 2004
"The
growth of private label in New Zealand presents a real challenge to
FMCG manufacturers. The experience of other countries suggests that
the key driver of private label growth is retail consolidation..."
The latest
Chartwatch Newsletter is offered in conjunction
with AdWorks, whose newsletter features a Coriolis article on The Future
of Private Brands in New Zealand.
Read the newsletter here...
Saturday, November 29, 2003
"Traditional
fast-food chains are struggling to compete with the likes of Subway,
which has capitalised on anti-obesity sentiment. When Restaurant Brands
shares plummeted after a $2 million dollar profit downgrade this month,
eight employees of a prominent merchant bank conducted a snap poll...."
Read the rest of the New Zealand Herald's article on struggle facing the fast food sector here.
As an added bonus
to website readers, three pages from the fast food section of the 458
page Coriolis Research Foodservice Report are available here.
Tuesday, November 4, 2003
Find out
more about Inside
the Kitchen: How to grow your business in the restaurant and café sector
in New Zealand, the new report from Coriolis Research.
After
fifty-five in-depth interviews with chefs and owner operators across
New Zealand, the report the foodservice industry has been waiting for
is now available! Covering both the opinions of chefs and the insights
from Coriolis.
Four key
reasons why this report is a must have...
Saturday, November 1, 2003
"The
Whole Foods Market in Manhattan’s Chelsea neighbourhood is a hot Friday
night scene. Singles flirt over a table of organic tomatoes on the vine,
balls of fresh mozzarella, and fragrant bunches of basil..."
Read more on
the Unlimited
website or on our In The Press section.
Tuesday, October 28, 2003
The
eagerly awaited new Warehouse Megashed opened in Whangarei last week.
After a visit on Saturday, October 25, 2003, we bring you some impressions
and pictures.
The store suggests more questions than it answers. Clearly the intent was to introduce a supermarket-style grocery offer...
Read
more in our special report (be patient
- photos may take some time to load).
Wednesday, October 15, 2003
Is
the phrase "innovative retailer" an oxymoron? Can anyone name a single
new concept or idea developed by a supermarket retailer in Australasia?
Why is this? Is there a good reason?
In manufacturing, new product research involves laboratories, scientists and a large expenditure of money...
Read more in
the latest Coriolis Chartwatch
Newsletter
Tuesday, October 7, 2003
Sometimes its important to take your eyes away from the detail and have a look at the big picture. What's happening in the industry? Where are your key customers going? What's next?
When
you look at it, the Australasian supermarket industry is one of the
most concentrated in the world. Five groups - Woolworths, Coles, Metcash,
FAL, and Foodstuffs - control 95% of supermarket retailing. Add in
Pick'N Pay and Aldi and you're at close to 98% by our calculations.
The past five years have seen significant changes in the market, including
the collapse of Franklins, the exit of Dairy Farm, and the arrival of
Pick'N Pay and Aldi.
To help you understand the big picture, we've just released a report titled An Overview of Australasian Supermarket Retailers. Right click on this link and choose the "Save Target As" option to get your own copy.
This reports
profiles the major Australasian supermarket chains. It includes analysis
of their past financial performance and their strategies for the future.
Interesting stuff whether you are a supermarket trying to understand
the competition or a manufacturer trying to understand where your customers
are going.
Wednesday, October 1, 2003
The
October issue of the new Foodservice Magazine has an article titled
"Chef's Identify Seven Consumer Trends." The material
for this article came from our upcoming report on the foodservice industry.
You can download the article here.
If you haven't subscribed already, you can find contact information
on their publisher's website. If you're interested in finding out
more about our upcoming foodservice report, email us on info@coriolisresearch.com