11th May 2022 By Bridget O'Connell | email@example.com | @foodtickernz
Foodstuffs New Zealand has followed supermarket rival Countdown in announcing its own temporary pricing initiative – one that will see stores selling some items below cost, according to boss Chris Quin.
The North and South Island co-operatives will cut the prices of more than 110 everyday items to what they averaged over 25 January to 25 April last year.
This will results in an average price drop of 10%, and would apply across its New World, Pak’nSave, and Four Square stores
Foodstuffs NZ managing director Chris Quin said that the co-ops used its data insight teams to identify the everyday products that 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,” Quin said.
The initiative would include 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.
The items will be labelled in-store and online under ‘Rollback’, and other promotions will continue over this time.
Last week, Countdown announced a Great Price Winter Freeze, which will see it hold the price of more than 500 products over winter.
Quin said its price cuts were “not a marketing stunt”, and would mean Foodstuffs stores will be selling some items below cost, as global inflationary pressure on food costs and prices continued.
“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,” he said.
“As locally owned co-operatives we have a responsibility to step up and our store owners are committed to this initiative.”
Foodstuffs also shed some light on supplier price increases at the North Island co-op.
It said over the last four months from 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 three years.
“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.
“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.
“Within the 19 cents of every dollar on the supermarket shelf we’re responsible for, we’re working hard to keep costs under control.”
A full list of rollback items will be available on Monday 16 May but some examples were provided.
At New World in the North Island, the price of Value White Toast, 600g, would be 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.
The price cuts would end on 14 August 2022.
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