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NZ is the highest spending country on deals and promotions

Must See 24/08/2018

Kiwis as a nation are keen shoppers trying to find a bargain, but are we actually saving money?

A Neilson report has recently found the spending habits of the world, and we rank as the highest for promotional spending. We spend every $6 out of $10 on supposed specials. Whereas the other countries surveyed were significantly lower with Australia spending $4 out of every $10 on promotions, Britain $3 out of every $10, Germany $2 out of every $10 and France just a $1.80 out of $10.

Head research Nielsen's Brett Miller says,

Shoppers are conditioned to look for and buy products on promotion, 

And this is indeed seen in our countries spending habits surrounding promotions, spending over half our money on specials and deals.

We have a $20 billion industry of supermarkets yet only containing two significant players, Foodstuffs, which owns the Pak'n'Save and New World chains, and Australian-owned Countdown. 

Foodstuffs' head of customer experience Emily Blumenthal, explains that deals are a key part of getting repeat customers and then holding them. 

We definitely have a big proportion of the population that...love to go out and hunt for deals.

First Retail Group managing director Chris Wilkinson claims that our market thrives off deals compared to other countries. He chats about how in other countries you will notice a lack of intensity surrounding deals and sales compared to our 'deal crazy' country. He also explains that due to our existing market being this way, it is tough to change. 

However even though we think we keep getting deals, in a market of promotions, that is most likely the original price, but you will still want to buy it due to our nature. 

Even The Commerce Commission in 2017 has warned retailers will be prosecuted if they mislead prices and promotions on deals.