Why New Zealand’s Strange Christmas Trading Figures Might Have Retailers Scratching their Heads

When the annual trumpeting of New Zealand’s December retail figures arrived in early January, it did so with very little fanfare. Sure, we’d all spent $5,936.8 million during the month, according to the Paymark press release, but even they were forced to describe the increase over November as “modest”. The National Business Review went one better quoting Westpac Bank senior economist Satish Ranchhod as saying it seemed “New Zealanders had a frugal Christmas” and the total take was “much weaker than market expectations for a bounce following a similar-sized fall in spending in November”.

So should retailers tighten their belts and prepare for the end of the boom time that has seen four straight years of strong growth up to 2016’s 6.7% growth rate (as rated by Paymark) for processing 1.2 billion transactions for $57.4 billion of goods and services? The answer is most probably no. Last year, the average Kiwi spent $12,230 in 255 transactions – that’s 4.5% more spending per person and 6.1% more transactions per person. And just because things got a little flat in the run-up to Christmas, doesn’t signal a sea-change in retail behaviour. Boxing Day, for example, saw the usual frenzied run on the tills with Paymark saying they’d processed a record $152.7 million – up 1.9% on last year. (Again, they called it a modest increase – but an increase is an increase!)

And, besides, there’s a lot of other statistics that will be music to the ears of retailers. An overall growing population (the year to June saw the fastest growth rate since the 1960s and is tipped to hit 5 million around 2020) and fluctuations in where those people live (Tauranga has just passed Dunedin as the fifth largest city in the country) means that there’s simply more people out there looking to spend their money. There’s also been a rebound in the dairy industry pumping a bit more of the nation’s milk money back into the economy, and the surging tourism sector is bringing plenty of overseas currencies on to our shores and into our tills.

So how do retailers tap into these changing times? The rising population does present some challenges – for example, it’s probably not enough to simply sit back and wait for returning expats and new immigrants to search you out. Instead retailers will need to look for products, retail displays and store layouts that customers might have been more used to where they used to live. And different regions are growing in different ways – the huge rise in Auckland’s population, for example, has had a knock-on effect for surrounding regions such as Waikato and Bay of Plenty, where retailers might now look to the changing face of their typical customer.

Tapping into the tourism dollar also needs some forethought. There’s been a marked increase in the number of visitors from China, for example, who now travel independently as opposed to in group tours. And this means that more retailers in holiday hotspots, cruise ship stop-offs or well-travelled routes between cities and frequently visited areas can expect to have tourists through their doors. (This is no fantasy either – as of February 2017, there are five separate airlines flying direct between China and New Zealand.) Regardless of where visitors come from, they offer a specific opportunity for retail – for example, the Countdown on Waiheke Island, which is a popular spot both for international tourists, returning expats and immigrants, has an “International Aisle” selling specific, hard-to-get products from England, Asia, South America and Europe.

So if you’re scratching your head wondering why your business is still making a profit while sections of the media are talking about a “modest” or “frugal” Christmas season, it’s worthwhile looking at where the spending is coming from. Retail is a rapidly changing industry worldwide at the moment and although some of the most exciting technology is yet to find its way to our shores, there is still plenty of ways to move with the times.

Mills Display has more than 25 years’ experience of working alongside retailers to find the right food display, point-of-sale display, signage and printed products to help them maximise their customer experience. If you are keen to create the right customised solution, you’re interested in our off-the-shelf display products or if you simply want to talk through options with our friendly and knowledgeable staff, you can get more information by downloading a catalogue, emailing us or by talk to one of our salespeople on Live Chat.

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How to Prepare Your Store for Summer Spending Habits Christmas Rush

New Zealanders can trace their living and buying habits, it seems, by the calendar. In a recent article on Stuff, what we wear, how we exercise and the contents of our shopping trolleys went under the spotlight over the weekend in which the clocks went forward for daylight savings. And, apparently, regardless of the weather, the traditional start of summer heralds a complete change of diet for us all.

Countdown’s sales figures for the past two years showed roast meats, soups, root vegetables dropped by 30% in October as shoppers turned instead to entertaining, barbecue and picnic foods.With salads, sausages, burger patties, pre-packed cheese boards as well as beer and cider were all up around 15%. Jason McQuoid, the store manager at Countdown Ponsonby in Auckland, said if the weather is fine on Sunday they will see a marked change in what people buy. “If we have a really beautiful day on Sunday we can guarantee we’ll see a lift in salads and barbecue meats because people will get the barbecue out Sunday, they will enjoy their first late night,” he said.

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At Mills, this change of season sparks a busy time as retailers across the board prepare for the hectic run-up to Christmas while food retailers also have to contend with this change in buying habits. Managing director Rosemary Fowler says the key areas for many food and produce retailers to watch out for are:

  • New, seasonal and attractive products in produce areas and serve-over deli counters.
  • Think about a change in the way you display produce to highlight to customers this change in the way they are thinking and “spark interest”.
  • Displays that push shoppers into thinking about barbecues and entertaining – for example, information about recipes or wine, cider and beer matches to different foods.
  • Having enough shopping baskets. Customers are more likely at this time of the year to pop in on the way back from work, or on the way to family and friends to pick up a small number of items to eat that day. This “bits and pieces” shopping is very much a summer phenomenon and can easily leave stores feeling light on basics such as baskets.

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And as the days count down to Christmas, stores need to be certain they’re prepared for their own “silly seasons” when they can expect higher numbers of customers and in-stock items and need to be able to cash in on all the extra sales. Mills Display is open throughout the festive season – apart from the stat holidays – for any stores who need last-minute display products but, ideally, businesses need to be preparing now so they’re not introducing new products or reorganising displays during the Christmas rush.

So here’s out Christmas checklist to make sure you’ve got all your business’s display bases covered:

  • Storage. With all that extra stock you’ll need a well organised way to keep it safe and secure as well as ensuring your staff aren’t exposed to any hazards from over-stocked storerooms.
  • Customised Display Products. Remember this is our busiest time of the year too and although we work hard to keep our turnaround times really fast, you still need to be prepared to give yourself enough time to order and for us to manufacture and deliver your products well in time for the rush.
  • Seasonal Displays. As soon as Halloween is out of the way, all that Christmas marketing soon takes its place. Don’t leave planning for one-off seasonal displays until the last minute – whether it’s to showcase a specific item, to attract people through your front door or it’s themed posters and wall hangers, being well coordinated means having this set up and good to go well before the start of December.
  • Information. Your shoppers are often keen to think of new ways to use new ingredients at this time of the year – or are maybe looking for something a bit different as a present or talking point at home. Either way, stores really need to be able to deliver information about products fast and effectively – and this can mean investing in good ticketing, pricing, posters and signs.

The key to successful summer and Christmas trading in New Zealand is being prepared for the rush that leads up to the holiday season and then finding the right strategy to attract customers through the early months of next year. At Mills Display we have years of experience working alongside Kiwi businesses and understand what it takes to cash in on the festive period.

If you are keen to create the right custom solution, you’re interested in our off-the-shelf display products or if you simply want to talk through options with our friendly and knowledgeable staff, you can get more information by downloading a catalogue, emailing us or by talk to one of our salespeople on Live Chat.

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How the Science of Queuing Can Affect How You Design Your Point of Sale

It’s no secret that Christmas queues at New Zealand stores are one of the biggest turn-offs for shoppers. And just as customers get wound up as they waste time while they wait to reach the cashier, so retailers can see their good will, loyalty, and potential spend go up in smoke. But there is plenty of research around queuing that can help stores design their layouts better, make the most of their retail display cabinets and point of sale displays, and keep their customers happy.

1. Customers with full shopping trolleys move faster than small baskets:
It might seem strange but research has revealed that the average amount of time it takes to greet, pay, say goodbye and move out of the point of sale area is 41 seconds per person while the average time it takes to ring up an item is 3 seconds. This means that one person with 100 items takes 341 seconds – just short of six minutes, while a queue of four people with 20 items each (that’s 20 fewer than the first person) will actually take 404 seconds – more than a minute longer. Retailers who understand this can find ways to limit the time taken at point of sale for shoppers with baskets to help queues move faster, while also ensuring enough variety of lanes for shoppers with trolleys or baskets.

2. Single line – multiple check-outs:
Although studies have shown very few customers ever join this type of single-file queue, they are far faster than lots of parallel lines. This efficiency does come at a cost, though, for the retailer who has to find space to accommodate a long, thin line – but, if successfully applied, it offers the fastest route to handling the largest number of shoppers.

3. Know your rights (and lefts):
Research has shown that right-handed people tend to join queues to their right which means that, because there are far more of them, queues on the left tend to be shorter and faster. In order to even out this natural discrepancy, retailers can make point of sale displays on left-side queues more attractive or have more of the right-handed ones.

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4. Tough customers:
Nothing slows down queues like people finding it difficult to pay, or chatting to the cashier, or who have items that can’t be scanned (such as produce), or who want information as well as a check-out. Retailers who divide their lines according to different types of product, or who have designated help-desks or information posts around the store can help cut their queues considerably.

5. Don’t let POS displays block cashiers’ views:
One study discovered that cashiers who can’t see the end of their queue don’t work as fast as ones who can see how they are able to keep their line from getting too long.

6. Keep your products well-labelled and displayed:
By having bar codes easy to find, having clothes displayed off their hangers for purchase, and by having information freely available in store, you’re going to cut down the time it takes for customers to move through the point of sale area.

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7. Fairness usually trumps fastness:
Many studies have found that what irks shoppers more than waiting in line, is seeing others who arrived after them served before them. And even though most people overestimate the amount of time they spend in a queue, they are willing to wait much longer to avoid the unfairness of having some people served faster than others. The message to retailers is to therefore strike the right balance in their queues – at serveries you can take a number, at the cashout you can create a single line feeding to multiple cashiers. In all queues you can offer a mix of information and potential purchases that keep customers engaged, rather than having them keep tabs on how their line is moving in relation to others.

Mills Display is expert in creating the right custom solution or off-the-shelf display products for point of sale as well as customer control products such as barriers and stands. For more information, download a catalogue, email us or talk to one of our salespeople on Live Chat.

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Good News About the Future of Retail

There’s Still Space for Displays and Shops

Two new pieces of research have revealed key information both about the future of shops but also the next generation of shoppers. And, despite the increased interest in online stores, the good news for bricks and mortar businesses is that retail display is still very much at the heart of how people like to spend their hard-earned cash. Both studies were carried out by Retail Perceptions which has spent 25 years investigating insights from shoppers on the trends affecting retailers and manufacturers.

The first study looked at “the next generation of retail” by asking more than 2000 teenagers – or Gen Z – how and why they shopped and what they looked for in the retail experience. And, although you might assume that this connected generation would prefer the virtual world in which to shop, they were surprisingly switched on to the in-store experience. “Generation Z is constantly connected to technology, which retailers may find intimidating to overcome when it comes to in-store engagement,” said Interactions President Bharat Rupani. “However, our study found that this group is longing for retailers to provide an engaging in-store experience. In fact, when given the choice, over 64% prefer shopping in-store versus online.”

The main features that these teens looked for in a shop were:

• Cleanliness
• Friendly and clued-up staff
• A “positive checkout experience”

Male Sales Assistant At Checkout Of Clothing Store With Customers

Other key findings from the report include:

• 89% of Gen Z are very price-conscious
• 62% would rather spend money on experiences as opposed to material items
• 81% would change brands if they found better quality elsewhere
• 75% check a store’s app for special offers before making a purchase and 75% prefer retailers that accept mobile payments

The main message to retailers is that the next generation of shopper is not going to dump the high street, mall or edge-of-town shopping centre any time soon – but that doesn’t mean that you’re not going to have to try a little harder to land their custom. The main way you can do this is by having a strong social media presence that pushes promos and offers, and then continuing that interaction in-store with demonstrations, tastings and a strong, informed workforce. Interactions second study looked at the “impact of augmented reality on retail”, and, again, this didn’t so much sound a death knell for bricks-and-mortar stores, rather it offered a strong indication that retailers, retail displays and point of sale will have to adapt the way they work to make the most of new technology.

Augmented reality offers customers a way to experience products before they purchase them – in the case of clothing, they might be able to see how they look wearing it, or the same item in different colour or style; for tech items, they can see demonstrations; and for foodstuffs, they can see how ingredients might work together. It can also help retailers push special promotions and deals.
“It’s not surprising that 61 percent of respondents reported that augmented reality has already changed where they decide to shop,” said Bharat Rupani. “AR is reshaping the way shoppers experience and engage with retailers. We are seeing even the most traditional brands start to include this experiential element in stores, largely driven by customer interest.”

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Key findings from the report included:

• 55% said AR made shopping fun
• 45% said it saved them time
• 68% would spend more time at a store if they could shop with AR
• 40% would pay more for an item if they could experience it via AR
• 72% had bought something they hadn’t planned to buy because of AR

Although AR is yet to make a huge splash in New Zealand, it is very much on the horizon and retailers need to work out how their store’s design and display units can be adapted to make the most of such useful technology. What is clear from these pieces of research is that, more than ever, customers are demanding more from their in-store experience, and the way retailers show off and offer information about their products is vital to getting them to make purchases.

Mills Display can help your business find the right custom solution or off-the-shelf display products to be prepared for the next generation of shoppers. For more information, download a catalogue, email us or talk to one of our salespeople on Live Chat.

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A Guide to the Trends that Appeal to Five Generations of Shoppers

The double hit of an ageing population and an increasingly connected and tech-savvy youth means that New Zealand retailers face the prospect of appealing to five generations in their stores. Although most shop owners already understand their target audience, they also face having to work out how these five generations respond to different types of marketing and retail display – even store layout – in order to make the most of their potential customer-pool. Successful stores will combine elements so that customers don’t feel ostracised from buying specific products or to attract inter-generational shopping groups – for example, parents or grandparents accompanying children – and their potential sales.

So what are the generations and how do they respond to stores and marketing? The terminology changes slightly around the world – as do the years, although not by a great deal – but the general picture is:

  • Generation Z (iGen, Linksters): born post 1998
  • Generation Y (Millennials): born 1979 to 1997
  • Generation X: born 1965 to 1978
  • Baby boomers: born 1946 to 1964
  • Traditionalists: born before 1946

Generation Z

This most recent group of shoppers may be young but they’re potentially more switched on than any of their elders. Even toddlers respond to high-tech innovation and the incredible marketing success of films such as Frozen (that appealed to both boys and girls and across a wide age range) have proven that the generation that grew up entirely within technology have an incredibly broad range of experience across social media and traditional media such as film and television. Because most Gen-Zers have been raised by demanding and sceptical Gen-X parents, though, it isn’t enough to simply and stealthily appeal to blatant consumerism – especially with younger children, it’s important to get the older generations onside too.

Key instore marketing trends: Many Gen-Zers are connected to their mobile devices and are researching online while they’re in-store so retailers can supply information points around their stores or provide apps/websites that run in conjunction with the bricks and mortar shopping experience. This generation is also interested in the overall experience – they expect multi-media and multi-disciplinary displays or combinations of entertainment and retail. Even parent creches, where mum and dad can have a coffee while the kids go off and browse are becoming popular.

Generation Y

This generation helped develop and grow the technology that Gen-Zers take for granted and have seen it develop exponentially during their lifetime. Technology means Gen-Yers are incredibly well-educated about the world around them and are good at multi-tasking – but, because they were largely raised by Baby Boomers, they are also incredibly demanding customers.

Key instore marketing trends: This is the generation that cares that the in-store music is on-trend, that they have WiFi and that they can instantly tweet or Instagram their purchases. They might research online but they are also very visual and experience-biased when it comes to purchasing so respond well to interesting or quirky retail displays, front-of-store and end-of-aisle tubs and bins or in-store promotions.

Pretty lady in retail computer store

Generation X

Because many Gen Xers grew up in an age of financial insecurity and workaholic parents they tend to challenge authority and value work-life balance. For Gen-Xers, especially those with young families, time is an important commodity and they don’t appreciate browsing unless it has a strong purpose – they may well spend time online researching purchases before heading in-store, already knowing what they want. All of this points towards stores providing clear and transparent marketing strategies, helpful displays and information boards and ways to make Gen-Xers’ lives easier.

Key instore marketing trends: Gen-Xers like to have their store laid out to help them find their way around. Group items which go together – for example, menu ingredients in the same food display cabinet or everything you need to decorate a bathroom or build a patio – or offer in-store demonstrations and classes to give your business more of a community feel.

Baby Boomers

The post-war baby boom has created what is now a large generation of big-spending, money-comfortable customers who feel they have worked hard to get where they have and are now entitled to enjoy the fruits of their labours – albeit without wasting their cash. They are big online shoppers but also react well to finding and testing the latest gadgets, tools, tastes and products. They value loyalty and consistency in brands and in where and how they spend their money.

Key instore marketing trends: Although Baby Boomers like technology, they do prefer the human touch and so value practical things such as parking, accessible displays and clear and precise point of sale displays. They also respond well to cash-back or reward programs based on their spending levels.

Male Sales Assistant At Checkout Of Clothing Store With Customers

Traditionalists

This generation experienced the economic and social turmoil before and during World War II and is therefore disciplined, frugal and conservative – they are, however, the first generation to have reached 70-plus with good health. They may need products aimed specifically at older people and respond well to store layouts which take accessibility, display and signage seriously, but they are also an increasingly tech-savvy generation who will take their purchasing online if they find it easier.

Key instore marketing trends: It can be beneficial to market products to seniors based on individuality and usefulness rather than simply financial grounds – provide information on solutions and offer one-on-one advice if necessary. Aisles, shelving and displays should provide easy access and signage should be clear and precise.

Mills Display can help your business find the right custom solution or off-the-shelf display products to suit your target customers’ generation. For more information download a catalogue, email us or talk to one of our salespeople on Live Chat.

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How Mills Display is headlining individuality at Fine Food New Zealand

Mills Display is heading to New Zealand’s largest international food, beverage and equipment trade exhibition this weekend with two key trends in mind: unique and boutique.
Fine Food New Zealand sees a full range of industries across foodservice, hospitality and retail gather once every two years to discuss and display the latest trends and innovations. So this weekend’s event at Ellerslie’s ASB Showground is the chance for Mills Display to shine.

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Because we’ve been supplying a wide range of food retail and hospitality display and presentation products throughout New Zealand for years (we’ve been going for more than 25 years), we’re an already trusted name and a company renowned for working alongside Kiwi businesses to help them grow. But we’re also always keen to stay at the cutting edge of an industry which prides itself in fresh ideas – and there’s nothing hotter at the moment than offering personalised service to customers via bespoke presentation and display products, or tapping into the fashion for handmade, traditional artisan produce by using natural materials in retail and hospitality.

As well as our popular ranges of bowls, platters and presentation products for hotels, restaurants, catering and retail, some of the key products we will spotlight at the event will be:

  • Wicker baskets:
    Made to look like traditionally woven wicker, our synthetic polyethylene fibre resin wicker is more durable, resistant to sun and water and food-safe. We offer a number of sizes, designs and colours to suit all retail or food service requirements.Vegetable section in the department store
  • Wooden presentation boxes:
    Our crates are the perfect way to bring that market feel to a retail space or an organic decorative look to a hospitality business. And because our wooden products are New Zealand-made they can be custom-designed to suit your needs and branding.
  • Acacia chopping and presentation boards:
    Just like the crates, when you are preparing food front-of-house or presenting platters in a retail or hospitality situation, being able to use a customisable, natural product like wood means that you can really show off that unique and boutique look.
  • “Chalk” board easels:
    Nothing provides that market feel like a hand-written sign – whether it’s simple pricing or menu specials, or more specialised information like recipe tips or where produce originates. And because the boards are wipe-clean and use specialised pens, there’s no need for all that old-fashioned chalk dust.
  • Melamine slate trays and platters:
    All the look of traditional stone slate without the weight, tricky cleaning and difficult storage. Melamine gives you a great artisanal style with a durable and food-safe product.DFD000435

But as well as seeing what’s on offer, the best thing about the trade show is having the chance to speak to us about how our experience can find the right product to fit your business. We can help with supply chain issues via our combination of New Zealand-made products and large international network of suppliers as well as tell you how we can custom-design the perfect display product – and, because we’ve been around for more than a couple of decades, you can trust us to offer friendly and honest advice.

Producers can track Mills Display down at stand F33 in Hall 3 of the Fine Foods New Zealand show, right next to our sister company IFP Group, which will showcase a range of packaging products to help small Kiwi producers reach a larger market. Group Managing Director Ivan Papich said that the whole New Zealand food industry had embraced the back-to-basics, natural look from boutique food retailers to large restaurants.

“Maybe 10 years ago some of these businesses wouldn’t have lasted by going out and looking like a famers market, but now Mills Display is helping plenty of Kiwi companies tailor that unique boutique look,” he said. “It’s all about having a natural look while ensuring stylish presentation. So when people meet us at Fine Food NZ they’ll be able to consult with us to find out how we can not only offer tried and tested products, but also ones which let them guarantee their individuality.”

Fine Food New Zealand is the ideal event for New Zealand producers to experience what’s new, innovative and on-trend in the world of foodservice, hospitality and retail. As well as having hundreds of exhibitors, it’s a good chance to network with people from all aspects of the food-chain as well as learn from some of the best via its seminar series. Other interesting events hosted at Fine Food New Zealand includes the Innovation Awards, cooking competitions and demonstrations, bake-offs and baking masterclasses, a search to find the country’s best barista and the Top Shelf Boutique Drinks Festival – Australasia’s biggest trade liquor event.

Fine Food New Zealand runs from June 26-28 at the ASB Showgrounds, Ellerslie, and is held every two years to cater for businesses that prepare, serve and sell food and drink or operate in the accommodation and hospitality sectors. You can visit for free by registering by June 24 at www.finefood.co.nz or pay $25 at the gate.

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