Countdown’s $400 million plan to reinvent itself in the midst of a cost of living crisis is being criticised by consumers, who have labelled the move “ridiculous” and “a waste of money.”
On Tuesday, Countdown unveiled a plan to rebrand as Woolworths, a step it says is part of a wider “transformation programme”.
Countdown’s Australian parent company Woolworths Group says it will rebrand its 194 New Zealand stores over the next three years, and offer “more value for customers” through a refreshed loyalty programme and “everyday rewards”.
But the plan has been widely criticised by consumers, who question Countdown’s timing and priorities.
”Spending that much money on a rebrand when customers are struggling to get the most basics in life is a bit ridiculous, really,” one person wrote on Countdown’s Facebook page.
“We all know that supermarket profits are massive and with this crisis we are living in ... I just think your timing is way off.”
Another person says if Countdown had “$400m spare” the money could be used to reduce profit margins and prices, and increase pay for its staff.
The rebrand, which will see the chain revert to the name it last used in 2009, is also questioned by Massey University marketing expert Bodo Lang, who says it could backfire if not carefully managed.
”Consumers may interpret this as spending on something that they can’t see the value of,” he says.
"[It’s] a retro move to go back to the old brand, and also a risky move because it's an Australian brand and consumers may be fearing the cost of groceries will go up as a result of the rebranding.”
While Lang says businesses typically pass on the costs of rebranding, Countdown responded to consumer criticism by saying the change has been in the works “for some time” and costs will not be passed on to shoppers.
“The name change and rebranding is the cherry on the cake to represent the investment we’re making into providing the best possible shopping experience in New Zealand,” the company says.
“There’s a much bigger transformation going on in the background, with that sum of money being used to upgrade stores, innovate with new technologies, and strengthen our supply chain.”
1 comment
I reckon...
Posted on 21-07-2023 14:38 | By morepork
...they have a perfect right to rename themselves any time they want to. $400 million is a mere bagatelle in the $20 BILLION grocery business. Unfortunately, people struggling and having to buy half a cabbage (maybe for the first time in their lives) because they can't afford a whole one, see this number and don't fully appreciate what it is actually being spent on. (It isn't just renaming; it also includes major store upgrades and "revitalization" (bit like our CBD, really...)) I have advocated control on the outrageous profiteering in this industry for years. It isn't just Countdown, it is also their competition. I see more of my friends growing their own in the backyard and I may have to join them soon.
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