The Warehouse expands into fresh fruit, veges

Wednesday, 15 February 2023

The Warehouse is adding fresh fruit and veges to its grocery offering, with a trial of carrots, onions, potatoes, avocados, apples, sweetcorn, tomatoes and bananas.

The Warehouse is stepping up its rivalry with supermarkets, expanding its grocery range into fresh fruit and veges.

The discount retailer is trialling a range of fresh produce at six of its stores, with plans to expand the range and extend to more locations.

The Government has said it wants more competition in the supermarket sector following a Commerce Commission review which found that the supermarket giants could be making $430 million a year in excess profits, and The Warehouse has flagged its interest in expanding more into the sector.

“The supermarkets (and many suppliers) are very comfortable with the current set-up but we’re not so we’re doing something about it,” said Nick Grayston, chief executive of The Warehouse Group. “We remain committed to offering Kiwis great value on essential groceries and we think this should include fruit and vegetables.”

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The Warehouse is adding fresh fruit and veges to six of its stores, and plans to expand the range and locations if customers support it.

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From Wednesday, fruit and vegetables will be available at The Warehouse stores in Whangārei, Westgate, Lyall Bay, Riccarton, Timaru and Invercargill.

The Warehouse chief product officer Tania Benyon said the retailer would trial a range of fresh produce to gauge customer demand, and the company would be guided by them on whether the range and number of locations were extended.

“We are focused on offering great value groceries and household essentials to Kiwi families, and we’re excited to be testing fresh fruit and vegetables with our customers,” she said.

“We already stock a good selection of what Kiwis want and need for their weekly shop – pantry basics, bread, milk, eggs, cereal, toothpaste, toilet paper, pet food as well as laundry and cleaning products, so offering Kiwi families fresh produce at The Warehouse is an exciting next step for us.”

The company would work with local suppliers where practical for supplies of carrots, onions, potatoes, avocado, apples, sweetcorn and tomatoes. Bananas would be sourced from overseas because they needed to be grown in a warmer climate.

The Warehouse has previously said it has saved families millions by selling cheaper breakfast items like $4 butter and $3 milk and would continue to expand its grocery range as the cost of living rises.

The company provided a cost comparison of its offering, saying that as of Wednesday, a basket of bread, milk, butter, Marmite, Weetbix, coffee, apples, tomatoes, laundry powder and Purina cat food cost $48.55 at The Warehouse, compared to $60.66 at Countdown.

A 1.5kg bag of carrots, onions or apples at The Warehouse cost $5, while 2.5kg of potatoes cost $8 and 650g of tomatoes cost $5. A bunch of bananas retailed for $2, three sweetcorn for $4, and three avocados for $5.