Online supermarket Paddock to Pantry is expanding its delivery presence in Wellington as it continues to grow amid a strong grocery duopoly. Photo / Sylvie Whinray
Online supermarket Paddock to Pantry is expanding its delivery presence in Wellington as it continues to grow amid a strong grocery duopoly. Photo / Sylvie Whinray
Family-owned online supermarket Paddock to Pantry is expanding its Wellington presence with week-round deliveries as it continues to grow amid the industry’s duopoly dominance.
Paddock to Pantry focuses on delivering grocery brands at affordable prices. It’s range includes The Meat Box meat, quality produce sourced directly from local growers, andwell-known branded groceries.
Customers can choose to have their groceries delivered by NZ Post or Urgent Couriers, with delivery now possible seven days a week and overnight in the capital.
Chief executive Wayne Kennerley said that as the business expanded, it provided customers with more choice over where they buy their groceries.
“Our online Supermarket offer is expanding quickly as more and more consumers become aware of our offer. In March, we are offering free delivery NZ-wide with a spend of over $100.
“The reality is you are far better to go and walk into a Pak’nSave and buy them, right? That’s why you saw dairies walking in with trolleys and buying from there.”
The wholesale operation allowed Paddock to Pantry to buy goods at a good price, but it was increasingly buying its stock directly from suppliers as its volume expanded.
Kennerley believed the business’ ability to offer meat, produce, and dry groceries and distribute them nationwide was a key differentiator.
“We’ve been doing it for a while, but we haven’t made it the biggest … because it’s about trying to get things operationally really efficient.”
He believed the business’ operational structure would ensure they do not make mistakes of similar players in the industry, namely Supie.
Paddock to Pantry operates fully out of its Auckland-based warehouse, although it is setting its sights on a larger space.
Supie was a former online grocery startup that went into voluntary administration in 2023, owing millions.
“To give you some idea, Supie had 120 employees when they went belly up, right? We turn over more than they did and we have 12. The frank reality is low-margin grocery is a low-margin game, so you’ve got to be really efficient and really good at what you do.”
With expansion comes the need for more room, but Kennerley ruled out for now setting up a second distribution centre in Christchurch or Wellington.
Instead, he’s focused on moving to a larger warehouse in Auckland.
“Essentially, the benefit we have is we buy from suppliers all into one warehouse, so it’s really efficient for them, as opposed to asking them to send directly to multiple locations.”
“I suppose we’ve set up the operation to be delivering on tight time frames, because actually what makes us different, and especially with meat, is it’s incredibly fresh.”
Grocery industry
Reform to the grocery sector is on the cards for the Government, with minister Nicola Willis willing to “do a deal” with any supermarket company eyeing an entrance into the New Zealand market.
Kennerley confirmed he had been in contact and provided submissions to the Grocery Commission, as well as reaching out to Willis herself.
He believed while the Government would love another big-name player such as Aldi or The Warehouse to enter the industry, it would take years for them to properly develop.
“The reality is we are here and now. What I’m asking of the Government is, you can help and fast-track us, because we are here now and we can deliver New Zealand-wide great brands at great prices. Isn’t that what you want?”
Looking ahead, Kennerley was focused on continuing to expand Paddock to Pantry’s online offer.
He believed even if Aldi entered or another player such as The Warehouse or Costco expanded, they would be able to deliver.
Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.
