With grocery prices making a disproportionate dent in Kiwi wallets, the Commerce Commission’s first annual grocery report released last month, and the sector now worth $25 billion, how did we get here? From dancing fruit to queues for Costco, Nikki Birrell takes a look back at where we’ve done our shopping over the years and what’s changed.
The New Zealand supermarket industry has come a long way, from the first self-service stores to the present day, with the industry now worth $25 billion.
Along the way, these supermarkets have left an indelible mark on Kiwi culture, from catchy jingles to quirky mascots, including giant plastic cows. Here’s a timeline of how it all unfolded, peppered with a few memorable moments, and where we’re at now.
1950s-1960s: The dawn of self-service supermarkets
Though New Zealand’s first self-service grocery store opened in 1948, Four Square in Onehunga, the country’s supermarket revolution truly began in 1958 with the opening of Foodtown in Ōtāhuhu, Auckland.
This was the country’s first true supermarket, modelled after American concepts where customers could freely roam the aisles, selecting items themselves rather than being served from behind a counter.
The concept was a hit, and the idea of self-service grocery shopping quickly took off.
Foodtown’s success paved the way for other supermarkets to emerge, setting the stage for a nationwide shift in how Kiwis shopped for food.
The first SuperValue store opened in 1964 (originally without the “e”) in Opawa in Christchurch.
1970s-1980s: Expansion and competition
These decades saw the supermarket landscape become increasingly competitive. Woolworths, originally known for its variety stores, became a major player in the supermarket scene during this period.
People of a certain age will no doubt remember the bright red signage that became a staple of neighbourhood shopping centres. Woolworths was everywhere and its presence was solidified through clever marketing and a wide range of products.
By the 1980s, Woolworths was a dominant force, giving rise to memorable TV commercials that have stuck in the collective memory of many New Zealanders.
Meanwhile, the Halls Group was making waves in the South Island with its SuperValue stores, while Progressive Enterprises – which would later become a supermarket giant – began expanding its reach with various banners, including 3 Guys and the unforgettable Big Fresh.
Big Fresh was more than just a supermarket – it was an experience.
Launched in the early 1990s, Big Fresh stores were known for their in-store entertainment, featuring giant animatronic characters that mooed, clucked and entertained the whole family.
The supermarket’s singing and dancing fruits and vegetables meant kids didn’t mind so much being dragged along to do the grocery shopping.
1990s: Consolidation begins
This era marked a period of consolidation within the industry. Progressive Enterprises and Foodstuffs emerged as the two dominant players.
Progressive, which operated Foodtown and Big Fresh, began to streamline its operations, leading to the eventual phasing out of older brands in favour of Countdown.
At the same time, Foodstuffs was expanding its New World and Pak’nSave brands.
Pak’nSave introduced the famous Stickman character in 2008. Stickman, with his witty and often cheeky commentary, quickly became a familiar figure in New Zealand advertising.
2000s: Countdown and the Woolworths connection
By the early 2000s Big Fresh eventually disappeared as supermarkets consolidated, shutting down in 2003.
Boutique grocery store Farro Fresh opened its first store in 2006 in Mount Wellington, and competitor Nosh opened that same year (though it would go on to close its doors for good in 2017).
Of the big players, Countdown and Woolworths had become almost synonymous, thanks to the acquisition of Progressive Enterprises by the Australian Woolworths Group. Countdown, known for its green branding and “You can count on us” slogan, became the primary supermarket banner under Woolworths’ New Zealand operations.
The Woolworths name faded from New Zealand’s retail landscape as all its supermarkets were rebranded to Countdown by 2011.
2022-2023: Costco arrives and Woolworths returns
Big competition arrived in 2022, with US chain Costco opening its first New Zealand store, with Kiwis queueing outside the Westgate supermarket ahead of the launch.
In a nostalgic twist, 2023 saw the announcement that Countdown stores would be rebranded back to Woolworths. This $400 million rebranding effort marks the return of the Woolworths name to New Zealand, starting with the first store in Bethlehem, Tauranga, which reopened under the Woolworths banner in August 2023.
This change was not just about a new name, the company said, but part of a broader effort to modernise stores and enhance the shopping experience.
Along with the name change, Woolworths introduced the Everyday Rewards loyalty programme, replacing the old Onecard system, and aiming to provide better value and a more integrated shopping experience for customers.
2024 and beyond: All eyes on the supermarkets
Groceries have been in the spotlight this year, as New Zealand questions the costs and competition of our local options.
Costco is thought to be planning a second store, and international grocery giant Aldi may be eyeing up New Zealand.
August saw the country’s largest Asian supermarket, Foodie, open to queues in Auckland’s Westgate.
This week a new study made headlines, confirming New Zealand supermarket prices are higher than overseas, with Kiwis paying more for trolley staples including fruit, vegetables, bread, milk, cheese, meat, chocolate, coffee and some toiletries.
Foodstuff’s proposed merger - which would see it combine its North Island and South Island entities into a single company - was rejected by the Commerce Commission on October 1, and may yet head to the High Court.
Another grocery store is poised to open in Auckland’s CBD, with the September 28 announcement that Farro Fresh will open a boutique supermarket in Commercial Bay in the coming months.
It’s clear that supermarkets in New Zealand are more than just places to buy groceries – for better or for worse, they’re cultural landmarks, filled with memories of singing veges, cheeky Stickmen and jingles that still echo in our minds.
From Foodtown’s pioneering self-service aisles to Pak’nSave’s no-frills approach, the supermarket industry in New Zealand continues to evolve, blending nostalgia with modern convenience.
Herald contributor Nikki Birrell has worked in food and travel publishing for nearly 20 years. From managing your kitchen to cutting costs, she’s shared some helpful advice on groceries, including the pantry items with the longest shelf lives, how to keep your herbs fresh for longer, and whether spreads, condiments and chocolate go in the fridge or pantry.
