Cheap Isn’t Enough: New Zealand Shoppers Punish Retailers With Poor Service

Macpac shines, while The Warehouse and Rebel Sport lag.

People walk inside a mall. Rachel Wisniewski/Reuters

New Zealand shoppers still want the lowest prices, but poor service can push them away, the latest Consumer NZ survey has found.

The nationwide survey of more than 3,200 people found electronics chain PB Tech, outdoor retailer Macpac, and 100% Home Appliances were among the top performers for customer satisfaction.

At the other end of the scale, The Warehouse, Rebel Sport, and major telcos One NZ and Spark recorded low scores.

The Warehouse Slips

The Warehouse, long known for its large red stores and bargain bins, has been a fixture since 1982 and now runs 90 outlets nationwide. But its dominance has weakened in recent years with rivals such as Kmart and, in Auckland, Costco entering the market.

In the survey, only 63 percent of customers who bought home technology such as TVs and game consoles at The Warehouse said they were very satisfied with the experience.

Winners and Losers

• PB Tech, which has expanded into Australia with an online store, topped the home tech and mobile tech categories.
• 100% Home Appliances, also operating in Australia, dominated large and small appliances for the 11th year running.
• Macpac achieved a 94 percent satisfaction score, the highest across the survey.
• Mitre 10 and Stihl Shop outperformed Australian giant Bunnings in hardware, with Stihl customers praising staff knowledge.
• Rebel Sport shoppers reported poor service, while One NZ and Spark rated poorly for value and range.
• In eyewear, OPSM lagged behind Specsavers and independent optometrists.

Consumer NZ spokesperson Kate Harvey said the findings showed price was not enough to keep customers loyal.

“Stihl Shop rated particularly high for its customer service and staff members’ product knowledge,” Harvey said.

“Macpac beat its competitors—Kathmandu, Torpedo7, and Rebel—in all the categories we ask about, including perceived value and range of products available.”

Spending Climate

The results come as households remain cautious with spending, with the lower Official Cash Rate (OCR) yet to flow through to most fixed-rate mortgages.

While shoppers are still hunting for bargains, Consumer NZ says service remains a deciding factor when choosing where to spend.

The survey was conducted in June and July.