Online supermarket Paddock to Pantry is continuing its expansion with a second physical store, along with a new warehouse to boost capacity.
Online supermarket Paddock to Pantry is continuing its expansion with a second physical store, along with a new warehouse to boost capacity.
Online supermarket Paddock to Pantry has announced yet another expansion as it prepares to submit to the Government on why it can be part of providing competition to the supermarket duopoly.
The family-owned business, which launched back in 2017, focuses on deliveringgrocery brands at affordable prices. Its range includes The Meat Box meat, quality produce sourced directly from local growers, and well-known branded groceries.
Now the business has purchased a new warehouse and has signed on to a second physical store due to open by Christmas.
Paddock to Pantry founder Wayne Kennerley said the new warehouse will allow the business to triple its range and capacity significantly.
“It also allows us to work with more suppliers to buy direct in bulk to provide lower prices to consumers. Our online Paddock to Pantry Supermarket offer continues to grow from strength to strength,” Kennerley said.
“This new distribution centre will allow us to increase the grocery deliveries we can make across New Zealand by a factor of 10, providing us with the opportunity to scale up our supermarket offer.”
The business has one physical store in rural Karaka, but will be opening its second location to serve the community of Glenbrook.
Paddock to Pantry has signed up to its second physical store to serve the community of Glenbrook. It's due to open by Christmas.
“Like our existing store in rural Karaka, we’ll be serving a community that otherwise wouldn’t have a local supermarket. We look forward to providing for the growing population of Glenbrook Beach (Kahawai Point).”
“Our online Paddock to Pantry Supermarket offer continues to grow from strength to strength and this investment (cira. $10m) sets us up to take the next step in our journey.”
Along with the expansion to capacity and its new store, Kennerley confirmed, the business will be submitting to the Government’s request for information from investors and prospective grocery market competitors about possible barriers to entry and investing and growing at scale in the market.
Kennerley said he wanted to submit because he believes Paddock to Pantry can be part of the solution, providing New Zealanders with more choice.
“We may not be the big international brand the government is seeking, and we’re not big enough to be the only solution. But we are a solution that is scalable that is delivering more choice now for where Kiwi’s can buy their meat, produce and popular grocery brands with delivery New Zealand wide.”
Wellington expansion
Earlier this year, the business announced it was expanding its Wellington presence with week-round deliveries as it continues to grow amid the industry’s duopoly dominance.
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.
At the time, Kennerley explained that Government intervention to open access to wholesale operations had allowed the small team to expand.
“A couple of years ago, or five years ago, your only options were to buy off the likes of Gilmores or wholesalers like that.
“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’s ability to offer meat, produce, and dry groceries and distribute them nationwide was a key differentiator.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
