Last year Nosh made a big splash by discounting milk. It couldn’t possibly work, ask any proper supermarket about loss leading.
All the tactic did is make them headlines, swamp the stores with bludgers looking for cheap milk and buying nothing else. Eventually you go broke if the only thing people buy you are making a loss on. The Herald reports:
Nosh’s new boss is brimming with ideas for driving sales at the upmarket grocery chain – but offering cut-price milk isn’t one of them.
Retail dairy prices are an emotive issue in New Zealand and Nosh gained a lot of publicity last year from offering milk for as little as $2 for 2 litres, which resulted in a small loss for the company.
Hayden Syers, who became chief executive in July, said the loss-leading strategy hadn’t been successful. Read more »