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Home / Bay of Plenty Times / Business

Growth at Papamoa benefit all round

Bay of Plenty Times
9 Sep, 2010 09:42 PM3 mins to read

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OUR VIEW - There's an old saying that competition is healthy, and in the case of Papamoa's business sector that couldn't be more true.
While Papamoa's population has boomed, its businesses have not been immune to the same recessionary impacts that have battered companies right across Tauranga city and Mount Maunganui.
However, the
arrival of a new Pak'n Save supermarket to the area has heralded the prospect of a supermarket war, with plenty of much-needed spin-offs for consumers and the local economy.
Neighbouring businesses are hopeful that the increased foot traffic from people shopping at the new Pak'n Save and the nearby revamped Countdown will have a flow-on effect, prompting more customers to come through their doors.
Another positive is that customers now have a genuine choice over who to shop with.
Shoppers in smaller communities don't always have that luxury, but in Papamoa there will soon be a clear distinction between cut-price Pak'n Save, whose owner-operator has already promised to be "very aggressive" when it comes to price, and rival Countdown, which instead is promoting itself by claiming a wider range and better quality of goods.
While Countdown prefers to focus on aspects other than price when it comes to evaluating its merits against Pak'n Save, there can be little doubt that the effect of competition will serve to drive prices down - it's the most basic example of market forces.
Logic would suggest the new Pak'n Save and the new-look Countdown will pull people away from other nearby supermarkets and keep them spending money in Papamoa, rather than travelling to Tauranga city to shop.
The region's economic watchdogs have applauded the decision by parent company Foodstuffs to set up a Pak'n Save in Papamoa, with Tauranga Chamber of Commerce chairman Max Mason describing it as sign that the food giant has faith in Tauranga's long-term economic future.
The growth at Papamoa comes at the same time as plans have been announced for a new shopping centre at Tauriko, on Tauranga's southern edge.
Collectively, the growth in local business can only be good for the Bay, both in terms of pumping more money into the economy and providing employment opportunities.
And of course, there's also the benefit for locals of having more shopping opportunities.
Having the two supermarket giants go head to head at Papamoa may also end up being that rarest of events - a war where everyone wins.

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