Fishpond Offers Cheaper Grocery Options, But Supermarket Dominance Remains

Online retailer Fishpond is positioning itself as a contender in the grocery market by offering competitive prices on several popular items. Products like six Milo snack bars are priced at $4.49, a pack of Tim Tams at $2.99, Boring oat milk at $3.79, and Watties pears at $2.59. In contrast, Woolworths lists the Milo bars for $4.99, Tim Tams for $5.49, Boring oat milk for $4.40, and Watties pears for $3.50. Despite these attractive offers, experts warn that Fishpond is unlikely to significantly disrupt the established grocery market.

Consumer Insights on Online Grocery Shopping

According to Jon Duffy, CEO of Consumer NZ, while Fishpond has been increasingly targeting the grocery segment, traditional supermarkets maintain a stronghold due to customer preferences. Duffy noted that many consumers prefer to perform their weekly shopping in one visit at a single location. He stated, “People might buy items on a site like Fishpond while purchasing other goods, but it does not replace supermarket shopping for most people.”

Similarly, Brad Olsen, CEO of Infometrics, echoed these sentiments, suggesting that while online-only retailers like Fishpond and Mighty Ape can offer cost savings, shoppers may not want to split their grocery purchases between multiple retailers. “Many shoppers may not want to go to the supermarket for three-quarters of their shop and then have the rest couriered,” Olsen said. He added that competition is beneficial, but significant barriers still exist for new entrants in the supermarket sector.

Challenges for New Entrants

Despite the competitive pricing, Fishpond faces challenges in capturing a substantial portion of the grocery market. For instance, even established players like Costco, which operates in Auckland, have only managed to influence their immediate areas. Woolworths continues to provide rapid delivery options, often allowing for same-day or next-day deliveries, while Fishpond’s orders placed on Fridays may take until the following week for delivery.

As consumers increasingly turn to online shopping, Fishpond’s efforts may attract attention, but it will take more than just attractive prices to shift the grocery shopping landscape. With a majority of shoppers still valuing the convenience of one-stop shopping, traditional supermarkets remain the preferred choice for many.

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