Patrick Noone: former Costco NZ managing director on whether more grocery retailers would boost competition

A former supermarket leader agrees New Zealand's lacking competition.

The Government's aiming to put supermarkets that would improve competition up for being fast-tracked in new reforms.

It comes as the Minister of Finance confirms there's been talks with Costco to potentially expand across the country in the coming years.

Former Costco NZ managing director Patrick Noone says their West Auckland store's provided some savings.

"In that same precinct, we had Pak’nSave, we had Woolworths across the street and we were able to operate and be extremely competitive with the local market."

LISTEN ABOVE

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:09):
You're listening to a podcast from News Talks be follow
this and our Wide Ranger podcasts now on iHeartRadio.

Speaker 2 (00:17):
Ever do for Sea Ellen, But.

Speaker 3 (00:19):
Thankfulyar when Nichola Willis's supermarket shake up will make a
difference in your weekly shop. Yesterday, of course she announced
a raff of reforms to make it easy for new
supermarket players to open and expand across the country and
it was clearly aimed at Costco. Patrick Noon is the
former managing director of Costco New Zealand.

Speaker 2 (00:34):
Hi Patrick, Hi, how are you very well?

Speaker 3 (00:37):
Thank you?

Speaker 2 (00:37):
Now?

Speaker 3 (00:37):
Costco was already planning expansion outside of Auckland. So has
this actually changed anything?

Speaker 2 (00:43):
You know? I'm not aware of the costco current plans
have been retired for two years now, but I can
comment on before I did retire, Costco was really interested
in New Zealand market. It's a great market. There is
a lack of competition there and Costco can bring quids
and services to the market, add some really really good
savings to our members there. And a case in point,

(01:05):
you know the West Auckland store in that same precinct
we had pack and say we had war wors across
the street and were able to operate and be extremely
competitive to the local market. So yes, New Zealand market
is a very attractive proposition for any food retailer. I
would think around the world, why hasn't Costco.

Speaker 3 (01:24):
If Costco loves it so much, why haven't they actually
expanded thus far? Because they had the Wellington plans and
they had what appears to have been the Rolliston plans
and nothing's actually opened.

Speaker 2 (01:35):
Well again, I'll just couch it and saying I'm not
aware of the current plans. They'll being sort of out
of touch with the group there. But at the time,
you think a new country is a very expensive proposition.
It takes a lot of infrastructure in terms of the
buying side of it. In terms of at that time,
the cost of building in Auckland was very expensive. The

(01:55):
cost of dealing with the Auckland Council added layers of
cost to the whole project. So it's a very expensive cost.
So you have to have a return on your investment.
So one class go at that time was sort of
a test to see how it all worked out. The
last thing. The other thing about New Zealand is zero
an island or two islands and getting inventory from North America,

(02:16):
from Asia and from the Australian market. Took a lot
of coordination, so that also presents some issues as well
being in stock all the time.

Speaker 3 (02:24):
Do you think that it's the game change of Costco?
Is the game changer that the country is looking for?

Speaker 2 (02:29):
Oh? I think so. I think Costco just from the
merchandising perspective and now that they're working out their kinks
we had initially. I think Costco can bring a lot
of value to the market for the New Zealand consumers. Absolutely,
we're proving that already and in fact that hasn't changed
since day we open.

Speaker 3 (02:46):
Patrick. Thank you for your time, Patrick Noon, former Costco
Managing Director of New Zealand.

Speaker 1 (02:51):
For more from News Talks ed B, listen live on
air or online, and keep our shows with you wherever
you go with our podcast on iHeartRadio.