Countdown to resume 'specials' and pay staff lockdown bonuses

Monday, 30 March 2020

News conference involving the Prime Minister and Ashley Bloomfield confirm New Zealand's first coronavirus death.

Countdown will pay its waged supermarket and distribution centre team members a bonus equivalent to an extra 10 per cent per hour worked over the course of the four week Level 4 alert lockdown.

The move comes as Countdown begins to run 'specials' discounts in stores nationwide again as supplies rebuild and the country starts to settle into a calmer shopping pattern.

Prime Minister Jacinda Ardern will address rising concerns about supermarket pricing during New Zealand's coronavirus lockdown at 4pm on Monday.

Countdown ending 'specials' has resulted in shopping bills rising.

Since the lockdown began households have found their food bills rising, with Countdown having ended 'specials' discounting, and prices of high-demand items like bread, and some fruit and vegetables rising dramatically.

Queuing outside supermarkets has become a feature of everyday life.

* Coronavirus: Why do fruit and vegetable prices seem so high?

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The supermarkets categorically deny they are price gouging, and are working round the clock to keep shelves full, and simply have neither the stock, nor the staff to manage discounting programmes, which they also believe would exacerbate demand.

The scale of demand from households stocking up has been unprecedented, and Stuff understands Countdown sales have equated to a daily average of enough food sufficient to feed 7 million for a day for the past few weeks.

But households are struggling to understand the price increases, and emails of concern are flooding in to Stuff, and are prompting political concerns.

Ardern told Newstalk ZB's Mike Hosking this morning the Government had no powers to force supermarkets to do discount deals and specials.

She had seen no evidence of price-gouging.

The prime minister was also consulting with supermarkets about them staying open over the Easter weekend, including Good Friday and Easter Monday.

She would also be checking if supermarkets needed help in keeping shelves stocked.

Ahead of the Prime Minister's briefing at 3pm, Countdown announced its waged supermarket and distribution team members working during the lockdown would be paid a bonus equivalent to an additional 10 per cent more per hour worked in recognition of the essential service they were providing, and from September, Countdown team members with 12 months or more service would earn a minimum of the living wage of $21.15 an hour.

Countdown said it had also been paying any of its team who were required to self-isolate, either due to travel, their age, or because they had underlying health conditions.

Prime Minister Jacinda Ardern will address the country on supermarkets on Monday at 4pm.

There has been anger around the country as grocery bills rose in the days leading up to the lockdown.

Garry Foreman from Tauranga said: 'When 40 per cent of your shopping basket is specials, and there are no specials, then the price of your shop will have gone up.'

Stephen Dickson from Tuatapere was shocked to see a $10 loaf of bread on sale.

It's not only human food that is costing more.

'I am on a low income and I noticed a big increase in some items prices overnight when Prime Minister Ardern announced level 4 was to be law on Wednesday at midnight.' said Stuff reader Jennifer Donoghue.

'One item Pedigree dog food was $10 one day and $17 the next (Wednesday) along with other increases on items like coffee, pre-prepared meals ($6-7 elsewhere $8-12 same brand, same food), etc.'

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.

But, specials were about to reappear.

Over the course of this week and next, Countdown customers would start to see short-term specials and promotions return as the supply chain re-builds and customer demand evens out, said Countdown managing director Natalie Davis.

'While the weekend was busy and online shopping in particular is still experiencing unprecedented demand, the supply chain is beginning to recover from Kiwis’ panic-buying and re-introducing specials is a high priority for the business,' she said.

“We’re absolutely committed to providing New Zealanders with good value during this challenging time, and we’re extremely sensitive to making sure we deliver this value right across the country for every community and in every store,” she said.

'We are feeding more people than we ever have in our history,' she said. 'We made the decision not to go ahead with planned promotions last week because we simply didn’t have the stock in store for our customers. Thankfully that is beginning to repair itself as Kiwis heed the advice to shop normally.'

'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.

ACT MP David Seymour is calling for butchers, bakers and other food retailers to be allowed to open during the lockdown.

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

Some are calling for supermarket's monopoly on grocery supply during the lockdown to end.

“As the Covid-19 lockdown evolves, the Government must walk back its restriction on bakeries, butchers and fruit and vegetable stores”, says ACT leader David Seymour. “The Government has effectively given supermarkets a monopoly on food, but it seems surprised that prices have risen. In some areas, that monopoly power is strong.

'The same Government that recently spent a year bashing petrol retailers for not being competitive enough must now allow competition in an even more essential sector: food.'

Ardern had indicated she would be revisiting what was deemed to be an essential business.

'In normal times, supermarkets face very real competition from butchers, bakeries, and fresh fruit and vegetable stores,' said Seymour.

'Supermarkets must restrain their prices in order to remain competitive. People are noticing price increases in part because supermarkets no longer face competition from these outlets.

“Allowing fresh fruit and vegetable stores, bakeries and butchers to open would actually help fight Covid-19. At the same time the Government is asking people to restrict travel and maintain physical distancing it is asking people to travel further to visit busier stores. This is illogical.'

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