Countdown.co.nz Business Analysis: New Zealand’s Leading Online Store and Factors for Its Success

Countdown Business Analysis: Key Insights

• Market Lead: The online platform of the Countdown supermarket chain is the top performer in the New Zealand eCommerce market. While New Zealand's eCommerce market is quite small, market revenues are expected to grow.

• Post-Covid Slowdown: Countdown.co.nz peaked temporarily in 2021 with eCommerce revenues of US$730 million, but the normalization period following store reopenings and macroeconomic pressures reduced revenues in the following years. Recovery is expected to be slow.

• Success Strategies: Offering everyday products in a convenient way in a small market with no major competition makes countdown.co.nz the number one eCommerce retailer in New Zealand.

Countdown is an established supermarket chain in New Zealand that is owned by the Woolworths Group. At the same time, its online store countdown.co.nz is New Zealand’s largest eCommerce retailer.

Recent restructuring initiatives are leading to the rebranding of Countdown stores to Woolworths Supermarkets in New Zealand. Whatever the ultimate branding, the supermarket chain is highly innovative in the New Zealand eCommerce market, constantly introducing new experiences for its customers across all its channels.

Find out what makes countdown.co.nz New Zealand’s leading online retailer.

New Zealand: A Small eCommerce Market With Consistent Growth Throughout the Decade

New Zealand is an island nation in the southeastern Pacific with a population of about 5 million. Its eCommerce market reflects this relatively small population, as market revenues are consistently below US$10 billion, but set to grow.

• eCommerce revenues in New Zealand were growing at a steady pace before the pandemic, but the global health crisis further accelerated market revenue growth. By 2021, revenues exceeded US$6 billion.

• Market revenues are expected to grow faster from 2024, after slowing in recent years. Slower online market growth has been common worldwide due to the re-opening of physical locations, inflation, and supply chain disruptions. The coming years are expected to see a recovery from these obstacles.

Countdown is well positioned in this market as a widely used supermarket chain for which the online platform is an additional sales channel. Let's take a closer look at its revenue development.

Countdown.co.nz Is Expected to Generate US$660 Million in Online Net Sales by 2024

Not only is Countdown New Zealand’s leading eCommerce store, but its revenue development is expected to recover from a post-pandemic slump.

• In 2018 and 2019, countdown.co.nz generated online net sales of US$317.5 million and US$426.9 million, respectively. In the first year of the pandemic, this figure increased to over US$500 million.

• The Countdown online platform reached its temporary peak in 2021, with annual net sales of US$728.9 million. The following two years were characterized by the usual downturn in online revenues, for the reasons described above.

• But Countdown’s eCommerce platform is also expected to follow the overall online market’s recovery in revenues. By 2024, eCommerce net sales on countdown.co.nz are forecast to surpass its 2022 figure by US$6.5 million.

In line with the market as a whole, Countdown is on a positive trajectory, consistently generating around 10% of the eCommerce market value. What are the factors behind this optimistic outlook? Here are 3 aspects.

1.  In-Demand Product Mix

The product mix on countdown.co.nz reflects the fastest-growing product categories in global eCommerce right now. Despite New Zealand’s remote location, online consumer behavior tends to follow global trends, enabled by widespread digital connectivity and shared technology.

With household care and grocery being the two fastest growing categories in the world, Countdown is well positioned to provide customers with the products they are most likely to buy online.

• Food accounts for 40% of net sales on countdown.co.nz, followed by Beverages at 19%.

• The second largest category is Care Products with 35%, made up of 15% Household Care, 13% Personal Care and 7% Health Care.

• Finally, Pet Supplies accounts for 6% of online net sales. Pet supplies are the fifth fastest growing category in global eCommerce.

The factor that makes these products particularly well suited for steady eCommerce growth is that groceries, household products and pet supplies are always needed. As more and more consumers join the pool of online shoppers, online sales of daily essentials will increase as online shopping makes purchasing these products more convenient.

Speaking of convenience…

2. Omnichannel Services for Customer Conveniences

Based on its large network of physical stores, Countdown offers services such as click & collect, recurring weekly orders and favorite products. Countdown's size and brand recognition, as well as its affiliation with retail giant Woolworths, allow it to offer customers exactly the kind of service they are looking for.

Offering online shoppers the choice of home delivery or store pickup is clearly a competitive advantage. But the ability to offer these conveniences depends on an operational store network, funding for technology infrastructure and staff.

3. Countdown Is a Leader in a Small eCommerce With No Major Competition

Countdown’s US$636 million in eCommerce net sales is well ahead of the rest of the top 5 in the country.

Amazon’s absence from the market, at least with a New Zealand domain, means that it takes several days for orders placed on Amazon Australia or the U.S. to arrive in New Zealand. This clearly benefits local retailers who can offer faster delivery, or timely pickup like Countdown.

A look at the top 5 online stores in New Zealand shows that Countdown outperforms all the others, including even household names Apple and Shein. Its market leadership is a self-reinforcing cycle, providing Countdown with the data and name recognition to build on for continued success.

Countdown Business Analysis: Wrap-Up

Countdown is a supermarket chain backed by the Woolworths Group, which enables its large store network across all of New Zealand, including omnichannel services and fresh produce for online and physical shoppers.

New Zealand is a relatively small eCommerce market, but one that is on a steady growth path. Countdown has a clear lead in this market, and its dominant position is another contributor to its continued eCommerce success.

Sources: GS1NZ – Woolworths Group