Foodstuffs cutting prices by an average of 10% on more than 110 everyday items

Wednesday, 11 May 2022

The lowest paid New World employees struggled to get above minimum wage.

Supermarket operator Foodstuffs says it will reduce the price of 110 of the most purchased grocery items by an average of 10%.

Foodstuffs, which operates the New World, Pak’nSave, and Four Square brands, said it would reduce the prices on items to what they averaged during the 13 weeks between January 25 and April 25 last year.

It estimated the move would save customers more than $500,000 a week. For the financial year in 2021, Foodstuffs North Island revenue from sales was $7.4 billion, while Foodstuffs South Island made $3.28b.

Foodstuffs NZ managing director Chris Quin said, in light of rising food prices, it had identified products that customers bought most often and would be reducing them from Monday to August 14.

* 'Shop normal' warning as supermarkets prep for Christmas

David Clark says the Government is working at pace to address grocery prices.

* Coronavirus: New World launches essentials grocery box delivery service in central Auckland

The items included frozen and fresh fruit and vegetables, meat and dairy products like butter and cheese, tea, coffee, sugar, flour, and personal care items like nappies and soap. 

Seasonal fresh fruit and vegetables, like broccoli and spinach, were not included, Quin said.

Quin said customers shopping at New World in the North Island would see Value white toast, 600g, reduce from $1.50 to $1.19, a 1kg block of Pams edam cheese reduce from $11.55 to $9.99, and a 1kg of Value frozen mixed vegetables reduce from $2.59 to $2.19. 

Foodstuffs managing director Chris Quin said that globally, food cost increases and the pace of food price inflation were at near record levels.

In South Island New World stores, some examples of products in the rollback included 185g Sealord Tuna reducing from $3.39 to $2.79, and 1.5kg Pams rolled oats reducing from $4.29 to $3.94. The items will be labelled in store and online under “rollback”.

The full list of items would be available on Monday.

The rollback in prices will start on May 16.

Quin said Foodstuffs had focused on getting the price rollback in place as fast as it could, so people could make the best purchasing decisions for their households.

“Globally, food cost increases and the pace of food price inflation are at near record levels,” Quin said.

“While New Zealanders are facing rising costs across the board, the supermarket checkout is the place where all of the cost pressures are coming to a head as food producers and manufacturers are being hit with every global and domestic price hike.”

Quin said that across Foodstuffs North Island over the past four months, the average number of products with supplier price increases each month had been 3300, representing a 357% increase, compared with the monthly average for the same time period over the past three years.

Last week, Countdown announced it was freezing the prices on more than 600 essential items throughout winter.

But it came under fire after the list did not feature any fresh milk or dried pasta, frozen vegetables, or personal care items like toilet paper, nappies, toothpaste or soap.

Carrots, potatoes and pumpkins were the only fresh produce included, while five of the six items from the meat and seafood department were smoked salmon products, and the other was a pack of streaky bacon.

Consumer NZ launched a petition on Tuesday, calling for the Minister of Commerce and Consumer Affairs, David Clark, to go beyond the Commerce Commission's recommendations in its report on the grocery sector in order to bring about stronger competition.

The most recent Stats NZ food price index found food prices were 7.6% higher in March 2022 compared with March 2021.

Grocery food prices increased 6.7%, fruit and veges increased 18%, and meat, poultry and fish prices increased 8.7%.