From a humble mail-order company to a 100-year-old cultural icon, the New Zealand department store chain “Farmers” is a fascinating business story. The IELTS Reading passage “Farmers – An Iconic Chain Store” takes us through the brand’s journey: from the founder’s groundbreaking business philosophy and its evolution through the decades, to a collapse that seemed like the end, and its impressive “rebirth.”
This is a classic Passage 2-style text about corporate history. This article from the ECE language center provides a translation, vocabulary analysis, and detailed explanations for each question.
Reading Passage
Farmers – An Iconic Chain Store in New Zealand Reaches a Milestone
A The chain of stores known as Farmers began one hundred years ago as a mail order company. Today the Farmers chain employs 3,500 staff across 58 branches, making it the most venerable institution of its type in New Zealand. “Coming to Farmers once a week has become woven into the fabric of New Zealand culture,” says business historian Ian Hunter. By 1960, one in every ten people had an account with the company. It was not only a shop but also hosted the largest annual parade in the country, the Santa parade each Christmas time. Gary Blumenthal, whose family have been customers for three generations, understands well the role Farmers have played in New Zealand culture. “We were on holiday in Auckland,” he explains, “and I decided that the lookout tower on top of the Farmers building would be a unique place to fit the ring on my new fiancée’s finger.” The couple has been married for 50 years.
B Farmers’ longevity can be attributed to the philosophy fostered by Robert Laidlaw, the Scottish immigrant who established the business. Right from the outset, Laidlaw guaranteed customer satisfaction, and those who were not entirely happy with a purchase would receive a full refund with no questions asked. This was certainly the first time such a guarantee had been made by a New Zealand retailer and was probably one of the first worldwide. Laidlaw believed that the scheme could work if he ensured that every product sold was of the highest quality relative to its price.
C Another important aspect of the Farmers’ philosophy was to internationalize the New Zealand market. By the time the Hobson Street store opened in 1920 in order to sell directly to customers for the first time, Laidlaw had established buying offices in New York and London so as to offer his customers the latest designs. This was a bold move in those days and won Farmers a devoted following. It’s also true that whoever you speak to regarding Farmers in the early years, whether managers or workers, they all emphasize how the company represented a large family. Everyone employed by Laidlaw felt they were building something that would ultimately be to the benefit of the whole country. For example, to mark the centenary celebrations, 58 Farmers’ stores around the country announced the neighborhood charities they would raise funds for—everything from guide dog services to volunteer fire brigades will benefit.
D Farmers has always had a heart, according to former board chairman Rawdon Busfield. “One day I was in the Hobson Street store and a woman came in with two small children—they didn’t have a lot of money, you could tell. That week we had a special on, a big bar of chocolate for a shilling… But the boy only had a penny. I took the penny and gave him the chocolate.” However, not everything has stayed the same. Farmers was once home to genteel tea rooms, children’s playgrounds, and an annual sale to celebrate the birthday of Hector the Parrot—who came to embody the store in the eyes of many shoppers and who died, aged 131, in the 1970s. You could buy houses from Farmers, and its saddle factory supplied the armed forces. In fact, although the company has grown considerably over the years, today it sells a narrower assortment of products than in the past.
E Walk through a Farmers store today and you’ll see big changes. Its most recent branch in the suburb of Albany is filled with bright lights and big brands. The branch sells cosmetics from 16 different international companies and buys from approximately 500 suppliers, of which about 30 percent are locally owned. “Eight or ten years ago,” says current chief executive Rod McDermott, “lots of brands wouldn’t partner with us. We weren’t in trouble as such, but we could have been doing much better because we were focused too much on price and not on fashion. The reorientation of the last decade has seen a great improvement.”
F Farmers almost didn’t pull through one economic crisis. In the mid-1980s, business was booming and the company had stores throughout the country. Then, with sales topping $375 million, it was taken over by Chase Corporation. Lincoln Laidlaw, the son of the company’s founder, remembers the dark days following the stock market crash of 1987 and the collapse of the Chase Corporation. “The business was being divided up,” he says, “and I believe that the original culture of the store was dispelled and it hasn’t been recovered. That’s a shame, but the business is still strong.” For a few turbulent years, the stores were controlled first by a consortium of Australian banks and later by a local corporation. In 2003, it went back into ‘family’ ownership with the purchase by the James Pascoe Group, owned by an established New Zealand retail family. Brand power has made Farmers profitable again, according to McDermott. “And now we’re becoming the brand we used to be… It’s like the rebirth of an icon.”
Questions 14 – 18 (Matching Information)
Reading Passage 2 has six paragraphs, A-F. Which paragraph contains the following information?
14. a mention of the company being sold
15. a reference to how the range of goods for sale has become more limited
16. an example of an innovative offer made by the company’s founder
17. a description of a romantic event on the shop’s roof
18. a description of the latest store in the chain
Questions 19 – 22 (Sentence Completion)
Complete the sentences below. Choose NO MORE THAN TWO WORDS from the passage for each answer.
19. Farmers was set up as a/an ………………. business before it became a chain.
20. Robert Laidlaw set up ………………. overseas so he could sell up-to-date fashions.
21. According to employees, Farmers was like a/a ………………. .
22. Farmers held a/an ………………. once a year in honour of the company’s famous pet.
Questions 23 – 26 (Matching People)
Look at the following people (Questions 23-26) and the list of ideas below. Match each person with the correct idea, A-F.
23. Ian Hunter
24. Rawdon Busfield
25. Rod McDermott
26. Lincoln Laidlaw
List of Ideas
A The character of the company has changed for the worse.
B The store is selling more local products than in the past.
C The company believes in offering lower prices than their competitors.
D The staff has always believed in generosity.
E The store is an integral part of the local way of life.
F The store needed to change its approach to business.
Summary of the Reading Passage
The passage describes the 100-year history of Farmers, an iconic New Zealand chain store, from its founding and business philosophies to its crises and eventual rebirth.
- Paragraph A: Introduces Farmers as a “venerable institution” and part of the “fabric of New Zealand culture,” illustrated by events like the Santa parade and a marriage proposal.
- Paragraph B: Reveals the philosophy of founder Robert Laidlaw: ensuring customer satisfaction with a “full refund with no questions asked” policy—a revolutionary concept at the time.
- Paragraph C: Highlights a second philosophy: “internationalizing” the market by establishing buying offices in New York and London. It also emphasizes the company’s “large family” culture.
- Paragraph D: Shares a story about the former chairman’s generosity. However, it notes that the company has changed: it no longer sells the wide variety of products it once did (e.g., houses, saddles) and now offers a “narrower assortment.”
- Paragraph E: Describes the modern transformation of Farmers (bright lights, big brands). CEO Rod McDermott admits the company was once too focused on “price” at the expense of “fashion,” and that this “reorientation” has led to significant improvements.
- Paragraph F: Details the company’s biggest crisis: being taken over by the Chase Corporation, followed by the 1987 stock market crash. The founder’s son (Lincoln Laidlaw) believes the original culture was “dispelled.” The company was later bought by a New Zealand family in 2003 and is currently experiencing a “rebirth.”
Key Vocabulary
- venerable (adj) (Para A): accorded a great deal of respect, especially because of age or history.
- woven into the fabric of (idiom) (Para A): to be an essential or core part of something.
- longevity (n) (Para B): long life or existence.
- attributed to (v.p) (Para B): regarded as being caused by.
- outset (n) (Para B): the beginning.
- a devoted following (n.p) (Para C): a loyal group of fans or customers.
- genteel (adj) (Para D): polite, refined, or respectable, often in an old-fashioned way.
- assortment (n) (Para D): a miscellaneous collection of things.
- reorientation (n) (Para E): the action of changing the focus or direction of something.
- pull through (v.p) (Para F): to survive a difficult situation or illness.
- dispelled (v) (Para F): made a feeling or belief disappear.
- turbulent (adj) (Para F): characterized by conflict, disorder, or confusion.
Answer Key and Detailed Explanations
Questions 14 – 18 (Matching Information)
14. F
- Question: A mention of the company being sold.
- Evidence (Para F): “…it was taken over by Chase Corporation… In 2003, it went back into ‘family’ ownership with the purchase by the James Pascoe Group…”
- Explanation: Paragraph F explicitly mentions two instances of the company being sold/purchased.
15. D
- Question: A reference to how the range of goods for sale has become more limited.
- Evidence (Para D): “…although the company has grown considerably… today it sells a narrower assortment of products than in the past.”
- Explanation: “More limited” corresponds to “a narrower assortment.”
16. B
- Question: An example of an innovative offer made by the company’s founder.
- Evidence (Para B): “…Laidlaw guaranteed customer satisfaction… receive a full refund with no questions asked. This was certainly the first time such a guarantee had been made…”
- Explanation: “Innovative” is shown by the fact that it was “the first time” such an offer was made.
17. A
- Question: A description of a romantic event on the shop’s roof.
- Evidence (Para A): “…’and I decided that the lookout tower on top of the Farmers building would be a unique place to fit the ring on my new fiancée’s finger.'”
- Explanation: Proposing to his fiancée on the lookout tower is the romantic event described.
18. E
- Question: A description of the latest store in the chain.
- Evidence (Para E): “Its most recent branch in the suburb of Albany is filled with bright lights and big brands.”
- Explanation: Paragraph E describes the “most recent” (latest) branch.
Questions 19 – 22 (Sentence Completion)
19. mail order
- Location: Para A
- Evidence: “The chain of stores known as Farmers began one hundred years ago as a mail order company.”
20. buying offices
- Location: Para C
- Evidence: “…Laidlaw had established buying offices in New York and London so as to offer his customers the latest designs.”
21. large family
- Location: Para C
- Evidence: “…whether managers or workers, they all emphasize how the company represented a large family.”
22. sale
- Location: Para D
- Evidence: “…an annual sale to celebrate the birthday of Hector the Parrot…”
Questions 23 – 26 (Matching People)
23. E – Ian Hunter
- Location (Para A): “‘Coming to Farmers once a week has become woven into the fabric of New Zealand culture,’ says business historian Ian Hunter.”
- Explanation: “Woven into the fabric of culture” is synonymous with being an “integral part of the local way of life.”
24. D – Rawdon Busfield
- Location (Para D): “‘Farmers has always had a heart,’ according to former board chairman Rawdon Busfield. ‘…I took the penny and gave him the chocolate.'”
- Explanation: Busfield’s story about giving the boy chocolate despite the price difference illustrates the staff’s “generosity.”
25. F – Rod McDermott
- Location (Para E): “‘Eight or ten years ago,’ says current chief executive Rod McDermott, ‘…we could have been doing much better because we were focused too much on price and not on fashion. The reorientation… has seen a great improvement.'”
- Explanation: McDermott explains the need for a “reorientation,” which matches “needed to change its approach to business.”
26. A – Lincoln Laidlaw
- Location (Para F): “Lincoln Laidlaw… ‘and I believe that the original culture of the store was dispelled and it hasn’t been recovered. That’s a shame…'”
- Explanation: Lincoln believes the original culture was lost, which matches “character… has changed for the worse.”
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