A major Kiwi-owned retailer says it is shaking up how whiteware is sold in New Zealand – a move that was sparked by a bad shopping experience.
A couple of years ago, Lily Salter – director of furniture and bed retailer Big Save – went shopping for a washing machine. The experience left her frustrated.
“I picked the model I wanted and although I was told it was available, it turned out it wasn’t. I had to wait weeks before it was delivered. I thought this wasn’t very customer-focused and I walked away disappointed.”
Back then, Big Save primarily sold furniture and beds. Salter’s experience got her and the Big Save team started on an idea.
“Whiteware is a massive industry in New Zealand, and with our 52 years of retail experience, we thought maybe it could work for us. So, we set out to rethink how whiteware could be sold, with customer satisfaction top of mind.”
Family-owned and headquartered in Napier, Big Save – which opened its first store in Paraparaumu in 1973 – has added whiteware to its traditional furniture offerings across 26 stores nationwide, developing a unique new way of moving the product.
Salter says her own shopping experience revealed a whiteware industry stuck in outdated, customer-unfriendly habits.
“Traditionally whiteware retailers allocate floor space to suppliers and it’s up to those suppliers to fit out and merchandise the area,” she says.
“This results in fragmented brand-led displays that we believe don’t prioritise customer experience.
“There is also a belief that having more products in a store to choose from means more sales. But, based on our research, that simply isn’t true. Having too many options confuses customers and in our talks with the whiteware brands, we found out that only a small percentage of what’s on the floor actually sells – sometimes as low as 12%.”
Salter says the traditional way suppliers control in-store layouts makes it difficult for customers to compare models across brands. Similar products are rarely placed side-by-side, forcing customers to walk all over the store and rely heavily on salespeople who may be incentivised to push certain brands over others.
Instead, Big Save has introduced three leading whiteware brands into its stores that each offer something unique: Panasonic has been a household name in New Zealand for over 27 years, Beko is Europe’s number one selling whiteware supplier, and Samsung leads with cutting-edge technology.
“Importantly, we hold all our own stock in-store and in our warehouses, so customers don’t have to wait. No other retailer is doing this, which seemed crazy to us,” Salter says.
“Most whiteware retailers don’t hold their own stock, relying instead on brand and supplier warehouses. This can create an availability issue and means customers often buy products not actually in stock.
“Not finding out about delays like this until after buying or waiting two weeks for delivery like I did has become the norm. We think that’s unacceptable.”
Salter says that when they first explored the whiteware market, they were surprised by how little emphasis was placed on the customer. The shopping experience could be very confusing, with many customers putting off purchasing because of too much choice. In response, Big Save has built its whiteware range around simplicity and transparency, with service always at the core.
“Since most people already know their budget and what they need, we kept the range simple, in some cases offering only the top three best-selling models in each category – something no one else is doing,” she says.
“We’ve also purchased whiteware in bulk to secure exceptional pricing. This gives customers market-leading deals and the confidence the product they choose is in stock.”
While all Big Save’s whiteware products are available for same day pick-up or delivery, the company offers loan fridges for people needing one urgently before delivery or for customers in remote rural areas where delivery may not be possible the same day.
“At the end of the day we have built our whiteware offering around the customer, not the supplier,” Salter says. “I think it shows the New Zealand whiteware industry is finally being disrupted to make buying simple.”
For more information go to: bigsave.co.nz/whiteware