Do you think those who complained that Z energy were making monopolistic-type profits will now turn around and say that Z should actually increase their margins? I doubt it somehow.
Printable View
I doubt it too :)
Plenty of reasons for Z's profit fall, as outlined in the CEO's briefing. The one that could/should have been managed by the company was the drop in market share, especially in petrol. Perhaps the switch in supermarket affiliation to Foodstuffs from Countdown isn't a big success with customers despite the significant sales of fuel to the former.
Yeh thats the one that got me changing...
I'm really having a gutsful of loyalty marketing and plastic cards from retailers and hookups between petrol, supermarket etc
So its quite possible others are too.
'Waitomo' are making small inroads as well.
Does everyone use the app 'Gaspy' to find cheapest petrol?
crude down 15% from the highs last couple weeks , nz dollar up from lows.
mike bennetts comments
“Margins typically come under pressure when crude prices rise steeply, as prices at the pump lag behind the increases in the price of crude oil, and customers are sensitive to new, higher price points.”
wow so now the margins will be enormous and the price at the pump hasnt even fallen back to comparable levels lol . even fatter margins
http://www.scoop.co.nz/stories/BU1811/S00021/z-energy-cuts-guidance-a-second-time-as-1h-earnings-drop-21.htm
Nov 4. (Reuters) - The oil market’s two-year bull run is running into one of its biggest tests in months, facing a tidal wave of supply and growing worries about economic weakness sapping demand worldwide...
https://uk.reuters.com/article/uk-global-oil-rally/oil-rally-faces-tidal-wave-of-supply-idUKKCN1N904U
If their competitors also increased their prices as a result of increasing oil prices, it could be that Z is being generous by offering discounts?
However generally that annoys me too. Z is not the only retailer that does that. Isn’t it widespread throughout retailing? Does there need to be a tightening up of general legislation?
ComCom have a guideline on price discounting here: https://comcom.govt.nz/consumers/dea...rvices/pricing