Watchdog taking a closer look at declining choice in supermarkets
Saturday, 31 January 2026
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Choice on the supermarket shelves is declining, with grocery giants Foodstuffs and Woolworths stocking thousands fewer products than they did a few years ago, according to figures collated by the Commerce Commission.
The watchdog is understood to be concerned about the implications for food suppliers that want to get a foot in the door in the groceries market and is planning to step up its monitoring.
Its head of groceries, Alice Hume, said the commission was now undertaking work to track and better understand the concentration of suppliers in different grocery categories.
“This information will allow us to dig deeper into the power dynamics between the major supermarkets, large suppliers, and smaller suppliers,” she said.
“We expect this work to be completed in the middle of this year.”
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Last week the watchdog issued a warning to Woolworths, accusing it of a procedural error in failing to fully advise suppliers of their rights to appeal de-listing decisions during several months in 2024.
“Woolworths had informed suppliers of their right to challenge de-listing decisions but not at the required time,” a spokesperson from the commission said.
It is not all one-way traffic.
The Post invited both supermarket groups to come up with up to six examples of new products they had begun stocking over the past year, to show the efforts they were making to jazz up their offerings.
Listed at the end of this story, they include new ranges of Oreo biscuits, and dumplings made by a small business in Auckland that “don’t stick together”.
The total number of unique products Woolworths stocked at its stores around the country fell by more than a quarter, from 45,000 in 2019 to 32,000 in 2024, according to data the commission provided.
Foodstuffs’ North Island and South Island New World stores saw a decline from 57,000 products to 47,000 and 42,000 products, respectively, over the period, while the range in its Pak’n Save North Island stores shrank from 48,000 to 42,000.
Again, South Island shoppers fared worse, with 28,000 Pak’n Save products in 2024, versus 38,000 in 2019.
As of 2023, the average Woolworths supermarket stocked 24,000 different products, with the average Foodstuffs North Island Pak’n Save offering the least choice with 18,000 so-called SKUs (Stock Keeping Units), according to the commission’s data. SKUs are usually characterised by having their own unique barcode.
Woolworths — but not Foodstuffs — queried the figures supplied by the commission, saying it couldn’t reconcile them with the numbers it used, but nevertheless conceded its product range had shrunk.
“We constantly review our range of products and, while the headline number of products has reduced, we are surprised to see those ‘unique product’ numbers from the Commerce Commission,” a spokesperson said.
“We offered around 37,000 articles during 2025, down from around 39,000 in 2019, they said.
The company suggested the discrepancy could be partly due to the commission not counting “seasonal lines that are ranged only for a short time”.
The commission said all its SKU data was based on information supplied by the supermarket groups themselves.
Food & Grocery Council chief executive Raewyn Bleakley said the retailer focus on range reduction had been evident for some time.
The commission’s Grocery Code now required products were only de-listed for genuine commercial reasons, she said.
“It's encouraging to see that both the grocery disputes resolution process administered by the dispute resolution centre and the Commerce Commission's investigative work have started to clarify what this means in practice.”
Woolworths said it was “always focused on customer choice”.
“But if customers aren’t buying a product we can’t keep it on the shelves.”
It said it had introduced 4358 new products and deleted or de-listed 4383 over the past 52 weeks.
“In reality, our customers wouldn’t see these as genuinely new products or as old favourites disappearing as ‘new’ products may be minor pack-size changes, and deletions will include supplier-led barcode changes as well as deletions of under-performing products.”
Foodstuffs’ spokesperson said it couldn’t provide equivalent figures on new and withdrawn products as it operated as two separate businesses, made up of independently owned and operated stores.
“Individual owner-operators have some latitude over ranging decisions in their own stores, which makes it very difficult to provide a meaningful, consistent list.”
Because its stores were independently owned, there would “always be space to support the local supplier community with locally-ranged items”, she said.
New products were considered as part of its regular category reviews, but it also invited suppliers to pitch products at least annually during “submission windows” under its new product development (NPD) programme, she said.
“We’re also open to considering new products outside these windows. In this case, decisions are made by the relevant category team, based on the size and potential of the opportunity.”
Woolworths said most of its grocery categories were reviewed annually, with highly seasonal or fast-evolving categories reviewed twice a year.
“Beyond this, we have a clear NPD process outside of reviews for suppliers to introduce new products or update existing ones if these don’t align with review timings. This has covered about 550 products per year in recent years.”
New products the supermarkets are trumpeting
FOODSTUFFS
Fix & Fogg Pistachio Spread: “Pistachio spread is a global trend and Fix & Fogg brought the first NZ-made version to market. Since launching in September, it has performed exceptionally well in our banners.”
Fruitae Novelty Ice Creams: “A TikTok trend that we launched into store last year that very quickly became the No 1-selling novelty ice cream in our stores, with many selling out within days of the limited-time-offer launch.”
Kwongson Frozen Dumplings: “Offers a packaging solution that stops dumplings sticking together, and at a price that rivals mainstream dumplings. The success of the product has meant they can now move into further mainstream ranging which is a very positive result for an emerging supplier.”
Oreo Crème Egg Biscuits: “The product has only been on shelves for two weeks and is already getting strong customer interest. It’s a positive addition to the biscuit category range and creates a good opportunity to link with seasonal confectionery as we head toward Easter.”
Humara Spreads: “These spreads have only been on shelf for four weeks and are already showing strong momentum.” Come in the following flavours: Pistachio Spread, Dubai Pistachio Kunafa Spread, Choco Hazelnut Cocoa Spread, Bueno Hazelnut Spread.
WOOLWORTHS
Cadbury Dairy Milk Black Forest Crunchie 180g: Limited offer, no longer on sale. Combined dairy milk chocolate with cherry-flavoured jellies, crunchy honeycomb, and biscuit pieces.
Oreo Creme Filled Biscuits Pascall Marshmallow: “Customers are constantly hunting for new experiences in snacks and drinks, with chocolate and energy drinks consistently leading the way in new product development (NPD) sales.”
V Energy Drink Grape Burst 500ml: Often described as having a bold, sweet, and ‘candy-like’ grape flavour.
Woolworths own brand Baked Beans in Rich Sauce 420g: “Great quality and great value in a fresh new long life product.”
Woolworths own brand Burger Slaw 450g: “Perfect for your burger nights in.”
Woolworths own brand Cooked Chicken Breast Strips Lemongrass: “Showcases our beautiful flavours and our convenience.”
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