Latest / Best of Business / Jon Duffy: Consumer NZ CEO on New World's Smeg kitchenware promotion leaving customers unhappy

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Jon Duffy: Consumer NZ CEO on New World's Smeg kitchenware promotion leaving customers unhappy · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talk z'b follow
• 0:12
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• 0:16
  Speaker 2: Yes again, Yes again, the New World promotion is out
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  Speaker 2: of stock. What a surprise. Shops have started to run
• 0:23
  Speaker 2: out of the prize top option, which is the smeg Braser.
• 0:26
  Speaker 2: They're not going to get any more deliveries. Nobody from
• 0:28
  Speaker 2: Food Stuffs was available to speak with us today. Once again,
• 0:31
  Speaker 2: what a surprise. Consumer. New Zealand CEO John Duffy is
• 0:35
  Speaker 2: with me.
• 0:35
  Speaker 3: Hello, John, Hi here, there are you going.
• 0:38
  Speaker 2: I'm well, but this is like groundhold day, isn't it?
• 0:43
  Speaker 3: Well? It is. Yes, every time a New World run
• 0:47
  Speaker 3: some of these promotions. Yes, we do get complaints that
• 0:50
  Speaker 3: that stock has run out. They do put up you know,
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  Speaker 3: in their advertise and they say well stocked fast. But yeah,
• 0:58
  Speaker 3: often the stocks don't you know, the level of stocks,
• 1:02
  Speaker 3: don't meet people's expectations and they're run out.
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  Speaker 2: Hold an, did this launch? It feels to me like
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  Speaker 2: this launch what like there's a four weeks ago or
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  Speaker 2: am I not being fair here?
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  Speaker 3: No, it feels about four weeks ago.
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  Speaker 2: So they want to tell me that they're running out
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  Speaker 2: of the thing that everybody wants about halfway through. That's byes,
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  Speaker 2: isn't it.
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  Speaker 3: Well, yeah, under the Fit Training Act, they do need
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  Speaker 3: to make sure even when they say well stocks last,
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  Speaker 3: they need to have reasonable stocks to meet demand. And
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  Speaker 3: I guess the thing is with these promotions. This is
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  Speaker 3: not their first rodeo. They've done these over the years,
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  Speaker 3: so they do know that these promotions are popular. I
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  Speaker 3: can't make any comment on whether their stock levels are
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  Speaker 3: appropriate because I don't know the level of demand. But yeah,
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  Speaker 3: they need to buy law make sure that their stocks
• 1:51
  Speaker 3: are appropriate.
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  Speaker 2: Okay, So should I mean, look just for goodwill? I
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  Speaker 2: know that they can't. I understand the logistics of the thing,
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  Speaker 2: right they can't possibly actually fully imagine how many people engage,
• 2:01
  Speaker 2: how many people would want to have this particular thing.
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  Speaker 2: But surely the smart thing to do for good will
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  Speaker 2: would be to say, if you have a full of
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  Speaker 2: the things and you want to bring it in and
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  Speaker 2: we'll go and order you another one. Shouldn't they do
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  Speaker 2: that because they can?
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  Speaker 3: Right Well, I'm not sure if they can. It may
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  Speaker 3: depend on the deal that they've got with Smeg, who's
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  Speaker 3: the manufacturer here. It could be that this is you know,
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  Speaker 3: end of line stock or you know, whatever the deal
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  Speaker 3: is that they've got so that they can offer them
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  Speaker 3: on you know, effectively on special through the promotion. So
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  Speaker 3: maybe that they can't get any more, that there's a
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  Speaker 3: closed window. But I don't know that really is for
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  Speaker 3: food stuff to say, did.
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  Speaker 2: Those I know in the past people have complained to
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  Speaker 2: the Commus Commission about similar things. Do they ever go anywhere?
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  Speaker 3: Well, my understanding is that there was a promotion on
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  Speaker 3: knives a couple of years ago or even last year,
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  Speaker 3: and I think the knife block ran out earlier than people.
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  Speaker 1: As well.
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  Speaker 2: A that's the one people wanted.
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  Speaker 3: Well, it kind of was because you've got to the end,
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  Speaker 3: you collected all the knives and you're like, well where
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  Speaker 3: am I going to put these things? Let's go get
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  Speaker 3: the knife block. But there I don't know what the
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  Speaker 3: actual number was. There was only five available nationwide, and
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  Speaker 3: they ran out pretty quickly. It wasn't that small. Please
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  Speaker 3: don't sue me food stuffs, but.
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  Speaker 2: Cares if they do. I want to talk about it,
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  Speaker 2: So whatever, you can say whatever you want, John right now.
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  Speaker 3: Well, the issue really was that that the knife blocks
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  Speaker 3: ran out quicker than people anticipated. And my understanding was
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  Speaker 3: there were complaints to the Comics Commision. Whether it was
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  Speaker 3: specifically on that issue or not, I'm not sure, but
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  Speaker 3: no doubt the Comms Comission had a look at it
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  Speaker 3: and probably repeated to food Stuff's what I've just said that, Hey,
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  Speaker 3: you need to make sure you've got reasonable stocks and
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  Speaker 3: before you've advertised these promotions.
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  Speaker 2: And yet here we are again, John, Thanks so much,
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  Speaker 2: John Duffy, Consumer New Zealand CEO. The promotion started on
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  Speaker 2: the ninth of Junior idiot. Thank you. That harsh, but
• 3:55
  Speaker 2: we're in the mode of being harsh at the moment,
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  Speaker 2: so i'ld take it. Ninth of June's that's two months
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  Speaker 2: another month ish to go. So there two thirds of
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  Speaker 2: the way through and they've run out. I still don't
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  Speaker 2: think that I still don't think that's on for
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