Want a new appliance? Be prepared to wait months

Tuesday, 4 August 2020

Wellington woman Lorraine Nicholson went to Harvey Norman in July with a plan to buy a television.

She eventually walked out with the display model because she was unwilling to wait more than two months for a new one to arrive.

“We asked [the salesperson] when they were going to get more in, and he said nine weeks.”

Other models had the same wait time.

Darren Gittins, director of 100% Newbolds, says there has been a surge in demand post-Covid-19. At the same time, it has been harder to get some stock.

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Lorraine Nicholson says she bought the floor model television rather than wait nine weeks for a new one.

“He said, we just haven’t been able to get anything in. There was a lady behind us, and they were having the exact same conversation about vacuum cleaners.”

The salesman told Nicholson that high demand and slow supply lines meant the store wasn’t certain when products would arrive.

A spokeswoman for Harvey Norman declined to comment.

But the problem is not isolated – shoppers around the country are having to wait months for new appliances as high demand for the items combines with limited supply.

Darren Gittins, director of 100% Newbolds, said there had been problems with stock levels since the end of lockdown.

“Microwaves, top-load washing machines, bread makers and freezers have all been under pressure,” Gittins said.

“But there have been alternatives available. Being a locally owned store we get well looked after by our suppliers.”

Gittins said the Fisher & Paykel ransomware attack had made stock shortages worse.

“Pressure has been put on [on other suppliers] by New Zealand’s biggest whiteware brand being unable to send stock out,” he said.

Demand had also been high as New Zealanders spent more on their homes.

“At this stage a lot of stock is coming in August, who knows what will be happening after that,” Gittins said.

First Retail Group managing director Chris Wilkinson says consumers should prepare themselves for a period of uncertainty and possibly stock shortages.

Noel Leeming has faced criticism over the last six months for selling items it didn’t have in stock.

Since January, the Commerce Commission has received 102 complaints about Noel Leeming which related to non-delivery or timeliness, or which contained the keywords “delivery” or “stock”, a spokesman said.

“We have a current investigation into this matter and cannot comment further at this time.”

First Retail Group managing director Chris Wilkinson there were a few things driving the supply issues.

Gaps in the supply chain, particularly for parts, had been a significant issue.

“But probably one of the biggest aspects is that we have had extraordinary demand in some of these categories post-Covid,” Wilkinson said.

“The demand has taken the market by surprise in many cases. These orders are made well ahead of time, and we are not the only country facing this greater demand either.”

There was significant uncertainty globally and what was happening with consumer demand and the supply chain, he said.

“We are only a small part of the global marketplace and if those larger markets have demands, they are the ones that speak loudest.”

Wilkinson said consumers could see higher prices as demand outstrips supply.

“New Zealand consumers can expect uncertainty, in terms of supply chain, so you can’t guarantee that those products will be available, you may have to look wider than your first choice, looking at other brands or going up in spec. Shifting expectations is something you may have to do.”

The Warehouse Group, which includes Noel Leeming, has been approached for comment.