Foodstuffs rolls back prices by an average of 10% on more than 110 everyday items to 2021 levels
Wednesday, 11 May 2022
In a move that Foodstuffs estimates will save customers over half a million dollars each week, the two New Zealand owned cooperatives, which operate the New World, PAK’nSAVE, and Four Square brands, have announced that from Monday 16 May they will roll back the prices on more than 110 of the most shopped grocery items to what they averaged over 25 January to 25 April last year.
Foodstuffs NZ Managing Director, Chris Quin says that the co-ops considered the challenge of rising food prices and where it was hitting shoppers hardest, using its data insight teams to identify the everyday products that Foodstuffs customers buy most often. "Our customers buy more than 1.3 million of these products each week, so we then looked at the 13-week average price of these items across 25 January to 25 April last year and are dropping the prices back to those levels from Monday 16 May until 14 August 2022."
Across this basket of goods, New World, PAK’nSAVE, and Four Square stores are reducing prices by an average of 10%.
"This is not a marketing stunt. It’s a real saving for our customers and a real cost to our business, as a result of this price rollback our stores will be selling some items below cost. Other promotions will continue over this time. These are extraordinary times and kiwis must be able to afford the everyday items they need in their weekly shop over the next few months. As locally owned co-operatives we have a responsibility to step up and our store owners are committed to this initiative. "
The basket includes frozen and fresh fruit and veges, meat and dairy products like butter and cheese, tea, coffee, sugar, flour, and personal care items like nappies and soap.
“You won’t see highly seasonal fresh fruit and vegetables like broccoli and spinach in the basket, because we trade constantly to get customers the best deal on these each day, and will continue to deliver the best value through winter. "
Foodstuffs’ initiative will reduce prices on key products at New World, PAK’nSAVE, and Four Square stores nationwide. For example, customers shopping at New World in the North Island will see Value White Toast, 600g, rolled back from $1.40 to $1.19, Pams Edam Cheese, 1kg block go from $11.55 back to $9.99, and Value Frozen Mixed Vegetables, 1kg, go from $2.59 back to $2.19. In South Island New World stores, some examples of products in the rollback include 185g Sealord Tuna going from $3.39 to $2.79, and 1.5kg Pams Rolled Oats going from $4.29 to $3.94. These items will be labelled in store and online under 'Rollback' so they are easy for customers to find. The full list of these items will be available for customers on Monday 16 May.
“Globally, food cost increases and the pace of food price inflation are at near record levels. 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. Transport and fuel costs, global supply chain issues, currency changes, skills shortages and increases in the price of equipment and ingredients are just a few of the challenges our suppliers are facing, and are adding to the cost of growing, making and retailing groceries in Aotearoa.”
For example, across Foodstuffs North Island over the last 4 months (January 2022 to April 2022), the average number of products with supplier price increases each month has been 3,300 – a 357.2% increase, compared to the monthly average for the same time period over the last 3 years.
“Within the 19 cents of every dollar on the supermarket shelf we’re responsible for, we’re working hard to keep costs under control,” says Quin.
“With household budgets under pressure, we’re working to buy well and run our business as efficiently as possible so we’re not adding cost. As two New Zealand cooperatives owned by our 430 store owners throughout New Zealand, we’re on the shop floor every day, committed to our local communities and being held accountable by New Zealanders every day for what we do. "
“The next few months will be challenging for New Zealand households, so this is something meaningful we can do as a business to help out.”
Foodstuffs rolls back prices by an average of 10% on more than 110 everyday items to 2021 levels.