Operating mechanics of New Zealands four main rural retail businesses

Abstract

New Zealand has four prominent rural retailers, Ashburton Trading Society (ATS), Farmlands, RD1 and PGG Wrightson (PGW). Each of these businesses core, is providing farmers with goods and services. Over recent years we have seen numerous mergers and amalgamations, leading to the marketplace we have today. Each business is having success in different areas, contributing to their ability to provide goods and services on farm at a sharp price. There seems to be little attraction for each business to compete head to head with each other, instead providing a healthy market place of “Low margins, low overhead costs, and input costs.” (Jason Minkhorst RD1) The future looks bright for each of these businesses, with numerous opportunities and growth strategies available to them all. Of course, this does not come without threats and game changing market place revolutions. The will see constant battling and drive a to see who can claim that number one spot.