YOUR LEVY AT WORK
DIFFERENT RULES CREATE CONCERN
allowed them to stay open during Level 4 lockdown. Financial controller, Lindsay Hotham, says the distinction drawn between supermarkets and independent fruit and vegetable retailers meant the company needed to have “all sorts of discussions” with the Ministry for Primary Industries (MPI) at the beginning of the Level 4 lockdown.
Words by Glenys Christian
Independent fruit and vegetable retailers found regulations confusing during the Level 4 lockdown with some able to remain trading as supermarkets were, and others not. Auckland greengrocer Jack Lum was forced to close its doors in late March despite making preparations to trade as an essential service and being able to do so for two days. Mike Lum, the son of the owner, who has worked full-time in the Remuera business for the last 37 years, said they had expected a police visit and believed they had the necessary social distancing and hygiene practices in place. Initially they were told they were doing everything right, but that all changed two days later when on a second visit the store was told to close immediately.
We had to get rid of everything,” he says. There was no talk of independent retailers banding together despite Jack Lum’s gaining the support of local Member of Parliament, ACT leader, David Seymour. He said it was a matter of equity with the government failing to give clear directions or rules. “We don’t have a lot of clout and our margins are very fine,” Mike says. Stock which was on hand at the store was wholesaled at a substantial discount to another independent fruit and vegetable retailer who was able to remain open and the shop closed its doors. The business received the first 16
NZGROWER : AUGUST 2020
government subsidy and so was able to pay staff over the 12-week period for which it lasted. That was topped up once the eligibility period finished and now after reopening on May 23 some of the ten staff are taking holidays or working minimal hours, while still grateful to be employed. Business is nowhere near normal with sales volumes still estimated at 30% down. -30% SALES VOLUMES PRE-COVID
SALES VOLUMES POST-COVID
“We’re not doing the turnover,” Mike says. “And we don’t know what the outlook is. The Saturday we reopened we expected it would be like a long weekend, but it wasn’t.” While some customers said they missed the shop being open, he believes a number have switched to online purchasing of fruit and vegetables or delivery of meal kits. “We can weather just about anything, but we don’t want to be banging our heads against a brick wall,” he adds. His hope is that with warmer spring weather people will be entertaining at home more, and fruit and vegetable sales volumes will increase substantially. Fruit World, which has been trading for almost 20 years, has 23 franchised stores from Silverdale, north of Auckland, down to Hamilton. While some specialise in fresh produce, others also stock bread and milk and a number of grocery lines, which
“There was quite a lot of confusion,” he says. The police had tried to close down some of their franchises, but phone calls to MPI resulted in those which sold milk, bread and grocery items being able to stay open. “That caused quite a lot of concern.” Once they were able to operate, some staff didn’t want to work so those stores were unable to open. And some staff wanted to wear masks which in some instances managers were not keen on, fearing this might scare off customers. “Things came right in the end, but it was a concern at the time.” One store had its cooler break down whilst it was forced to stay shut because it operates out of a shopping centre which was completely closed, with the carpark padlocked off. While under normal conditions that stock would be able to be sold, the matter had to be settled by way of an insurance claim by the franchise owner. Lesley Hotham says the result of the lockdown period was that some stores reported higher sales and some lower. But Level 4 restrictions were generally positive as with restaurants closed, customers were buying more fruit and vegetables to prepare meals at home. And while they would usually travel to dine at restaurants in different parts of Auckland, over lockdown they shopped locally. However, he believes the landscape might have changed when it comes to consumers’ buying habits, as those who had relied on online purchasing might not return to shopping in store as they had previously.
