Call for pricing probe as prime minister promises briefing on supermarkets

Sunday, 29 March 2020

People panic-buying has led to the cost of fruit and vege rising.

Budgeting expert Jennifer McIvor was shocked when she saw the grocery bill after her husband came back from the family's first lockdown supermarket shop.

'My husband did our grocery shop yesterday, and paid $29.19 for 1.3 kilos of chicken thighs, which on special would normally cost us $23.40,' she said.

Budgeting expert Jennifer McIvor is calling for a probe into supermarket pricing.

The experience mirrored the experiences of some of her clients and social media to whom she acts as a financial fitness coach through her Te Awamutu-based Creating Wealth business.

McIvor called on the Government to investigate, and ensure supermarkets aren't making additional profits during the Covid-19 lockdown as a result of their duopoly on grocery supply with many smaller retailers temporarily closed.

* Coronavirus: Online shopping forces temporary supermarket closures

* Countdown introduces 'only two of anything' limits across all products as demand surges

* Coronavirus: Another day of busy supermarkets across the country**

28032020 CHRIS SKELTON/STUFFCountdown on Riccarton Road had security at the entrance managing the amount of people in the super market at one time. People were keeping a 2 metre distance between each other while queueing up during the COVID-19 alert 4 lockdown.

Prime Minister Jacinda Ardern promised last week to keep a close eye on supermarket pricing, and was quizzed about it again on Sunday in her briefing with reporters.

Grocery pricing was one of the issues she would address when she gave a more general update on supermarkets on Monday, the prime minister said.

McIvor said there appeared to be two elements to the prices rises she, her clients, and followers had seen.

The Countdown online shopping website was busy on Sunday morning.

These were Countdown ending its 'specials' pricing, and rises in the prices of individual items, including fresh fruit and vegetables.

A Countdown spokesperson said specials had ended to discourage excessive demand, and denied that any shelf prices had risen with the exception of seasonal pricing changes, and market demand dynamics.

The supermarket panic-buying seems to have died down, and stores are reporting a return to some sense of calm after the lockdown began.

'We made the decision last week not to go ahead with planned promotions right now because we simply don't have the stock in store for customers and we don't want to exacerbate demand,' she said.

'We haven't put any of our standard shelf prices up in any Countdown store across the country, and we're very sensitive to making sure we deliver value for our customers in this particular time of need.'

None of the 3400 products on Countdown's 'Great Price' programme had changed.

But, she said: 'As with any week, customers may see produce and meat prices fluctuate due to seasonal or market demand.'

The fluctuations McIvor and her followers have observed have made them suspicious.

One of McIvor's online followers said while her budget was $300, she went over by $110.41.

A second went $79.07 over their $300 budget despite making no additional purchases from their usual shop.

McIvor said: 'During the lockdown, supermarkets have increased demand from customers who would usually purchase from bakeries, cafes, restaurants, takeaway outlets and liquor stores.

'No-one has the option but to purchase from supermarkets right now, so they have the monopoly in the food industry.'

She felt supermarkets could potentially be making higher than normal profits, especially in small towns, where the local supermarket could now hold an effective lockdown monopoly on grocery supplies.

'I know of some situations where Countdown is the only option in their town, so they have no choice but to pay these higher than normal prices' McIvor said.

'At a time where some people's incomes have reduced drastically or stopped altogether, their food bills are increasing, and it's not good enough.'

She encouraged people to send their grocery bills to the prime minister, and the commerce minister.

'Prime Minister Jacinda Ardern has encouraged people to send copies of their receipts to herself and the Minister of Commerce and Consumer Affairs Kris Faafoi, and I encourage people to get behind this and start showing the Government what is happening,' she said.