Matthew Lane is a born and bred Dunedinite, attending Otago Boys and studying accounting at Otago University. His start at Night ‘n Day was at age 13 or 14, restocking the drinks fridges or working behind the till of his parent's stores after school. But Night ‘n Day has always been an integral part of his life, with the company being founded in 1991 when Lane was just one year old - they have, in a sense, grown up together.
Lane’s first job outside the company was with Deloitte, which helped sharpen his professionalism and analytical skills. While there, he got his chartered accountancy, and after four great years with the company, he decided it was time to jump back to his roots at Night ‘n Day, taking on a role in business development. After a few years of managing store openings and franchisees, he shifted into the financial department to assist the financial controller. CEO at the time, Tony Allison, became a mentor and showed him the ropes of the business. Allison finished up in 2019, and aside from being cousins, the pair still keep in touch on the runnings of the company. Taking the role of General Manager was “a big step up” for Lane, so founders Denise and Andrew (also known as mum and dad), worked as “caretakers” to ensure Lane was ready to take the reins in late 2019.
Taking on the role of General Manager has been a whirlwind. With Covid hitting in early 2020, it presented a unique challenge for Lane. Covid provided a busy and dynamic environment that was, for the most part, positive because grocery and convenience will always be wanted, but “To sit and complain about the last couple of years would be incredibly naive” compared to friends in the hospitality industry.
After many years in the industry, Lane’s interest remains thanks to its fast-moving pace and innovations. Working with friends and, of course, family are also a bonus. He finds that every day isn't just a work day, and as long as that feeling lasts, he will be ready for whatever challenges the days bring.
Enjoying what they do is a big part of the company’s success. Something that also plays a role is the ability to make decisions fast. They might not be the biggest in the market or have the deepest pockets, but quick turnarounds make all the difference. If a new site pops up, Lane could be on a plane within 24 hours checking it out. While the calendar might be booked next week, things can change quickly. He finds himself wherever things need to be done, whether meeting suppliers or doing a set of financials. It is about being agile, and if he ever finds himself in a routine or static behaviour, something could be amiss. It was what he called controlled chaos.
“If I do find I am not doing it justice, or the company is going backwards as a result of what I am doing, that will be the time to reassess. But I am just loving it at the moment.”
Lane mentioned several red tapes and antisocial behaviours in the convenience industry in recent times, but Night ‘n Day has always managed to pop back up.
Wholesale Agreements
New grocery and wholesale measures from the government might give top-up shops the ability to grow into a convenience sector similar to what is seen overseas - one consumers actively rely on daily. The new policies the government is putting in place protect the broader competition market and those outside the duopoly. They are fixing past oversights that perhaps broke the industry and allowed for the loss of independent wholesale.
Lane said that the security of supply and cost-effective prices will always be a good thing. Still, they aren’t necessarily asking the competition for a level playing field, “we aren’t looking for handouts.” Historically Night ‘n Day has relied on Woolworths for wholesale, but the nature of being competition made it a fragile relationship. The same goes for Foodstuffs. If he were in their shoes, of course, you would be hesitant about providing to the competition, but ultimately it is about providing cost-effective products to Kiwis.
“I think the government has done a lot. You get out what you put in, and I have been amongst a large number of conversations. Trying to find solutions by being involved, talking to the right parties and through the right communication channels can contribute to the change.”
Night ‘n Day has explored every possible avenue for wholesale. Like most outside the duopoly, without government intervention, there would be no way for them to compete as it is an industry foundation issue.
Ram Raids
Ram raids are a nationwide issue; Night ‘n Day has seen them for the last eight or nine years. Lane believes that recent publicity traction has come from the attacks on Michael Hill and other jewellers. Around seven years ago, the Night ‘n Day in Woolston, Christchurch, was targeted six times in five months, so the team put their heads together to come up with solutions. Safe rooms, panic buttons and fog cannons were all part of the blueprint, but tobacco vaults proved to be the most reliable. Vaults stored out of sight independently dispense tobacco products once they have been paid for and have a shoot that brings products to the counter.
“We are getting all these ram raids, but banks aren’t. It is more lucrative to steal cash than what it is tobacco, so why is the industry getting targeted? It is accessibility. They aren't coming in for cash. They are coming in for tobacco, so removing accessibility was our solution.”
After installing the tobacco vault in the Woolston store, there have been no successful robbery attempts since. It is responsibility for the community, staff members and customers that Lane believes can be organised if you want it. This security has been self-funded and implemented across 90 percent of the Night ‘n Day network and has proved successful. The vaults are a serious investment of around $25,000 but are worthwhile in the long run.
“There has to be an onus and responsibility on us. We can’t sit back and expect handouts. It is no different than investing in alarms or a security system. Holding retailers' social responsibility is important.”
Smokefree NZ
As the inevitable draws near, Night ‘n Day have worked incredibly hard to diversify its business structure. Currently, the business model is still reliant on tobacco sales, but the long-term plan is to remove reliance for 2025-2026. Lane suspects smaller retailers are the ones that will suffer the most, and there could be evaporation of stores in the market.
Putting measures around the display of tobacco by removing display points or eliminating it from supermarkets and petrol stations makes it less convenient and takes away temptation. There is a framework model that could naturally filter out sales.
“I think it should be more like a liquor license. Premises have to prove they are worthy of selling. But we don’t make the rules when it comes to Smokefree. We play the hand we have been dealt and will do our best to educate.”
Night ‘n Day has had a significant drop in tobacco sales, and that is because you see a black cupboard or product shoot rather than white doors in stores - once again, the removal of accessibility.
When it comes to vaping regulation, this is a source of frustration for Lane. Once again, irresponsible retailers are trying to make the most of the rules they are being given. More specialist vape stores are popping up and could be more detrimental to communities than before the regulations were introduced.
The Night ‘n Day Difference
The Night ‘n Day difference is that it is smaller by numbers but still a high-performing team. They have one of the few head offices for a national company in Dunedin, as it provides a great work-life balance. While it can provide a hindrance when meeting with other businesses and suppliers, the quality team members it brings in allows for trust across the management board.
Being willing to push boundaries is about taking hits on the chin, and embracing success is also part of the company’s success. New initiatives like food-to-go, the milk bar and barista coffee are redefining stand-alone convenience, in some cases providing more sales than tobacco - what typically holds the top spot. Also, having operators in-store increases the care factor and provides a greater connection to the community in which the stores are.
“Our stores are quite well known and supportive in their communities.”
There are currently 57 stores nationwide - 21 in the North Island and 36 in the South Island. The Wellington CBD is a thriving area, with four stand-alone stores catering to all convenience needs, including a late-night snack. The North Island, however, has proven to be a hard nut to crack. A partnership with Gull allowed Night ‘n Day to enter the market with the petrol attachment stores, but Lane hopes to strengthen the brand name as crossing the strait has felt a bit like going across the ditch. Because strength is in stand-alone stores, Lane hopes to continue exploring this further.
The roadmap for Night ‘n Day is to one day be a competitor for supermarkets, recently purchasing Hampden - a full-blown supermarket offering and currently the largest Night ‘n Day store. The product prices are currently slightly higher than Lane would like, but the company is doing everything it can to give back to that community and hopes it will support them in return. Ex-Four Square stores are proving to be good purchases for businesses; with a base value already existing, it is a great way to transition into more grocery offerings.
“I feel so passionate about Night ‘n Day and am always happy to sit down and have a yarn about it.”
