Grocery Market Regulation Dashboard

Foodstuffs South Island supports the purpose of the Grocery Industry Competition Act 2023, to promote competition and efficiency in the grocery industry in New Zealand, for the long-term benefit of consumers. 

Under the Act, we’re one of three regulated grocery retailers in New Zealand who must take steps to help achieve that purpose. 

There are some actions we’ve immediately got on with ourselves, and others that require a joint effort with our supplier partners. 

Below is how we’re going as at July 2024

Retail

Price transparency, price integrity, innovation, and accountability.
Competition

Freeing up land and wholesale supply.
Supply

Grocery Supply Code and supplier engagement.

Retail

We know how important it is for our customers to have the right information at the right time, so they can make properly informed purchasing decisions. That’s why we’ve made changes to the way we price products and have steps in place to ensure   the price on the ticket is what’s paid at the checkout. We’re also keeping a close eye on food inflation and being transparent by telling customers what’s driving it and how to save, while continuing to invest heavily in our product range and stores.

Price transparency

We’ve simplified our prices and promotions so they’re easier for our customers to understand. 
  • Simplifying our specials

    We’ve made our prices   easier to understand by simplifying our pricing tickets and offering more goods at everyday low pricing. 

    PAK'nSAVE
    3 price tickets only

    Effective from July 2022
    New World
    4 price tickets only

    Effective from January 2023
    Four Square
    5 price tickets only

    Effective from August 2022 

    Regular

    Regular

    		  Regular

    Everyday Low

    = low price for longer

    Everyday Low

    Everyday Low Price

    = low prices that last on 100s of items

    Everyday Low Price

     Saver Ticket

    = special price available for 2 weeks

    Extra Low

    = a price so low it won't last

    Extra Low

    Super Saver

    = big discounts for a limited time

    Super Saver

     Value Ticket

    = Special price available for 4 weeks
     

    Club Deals

    = special discounts for Clubcard members for a limited time

    Club Deal

    		  Local Deal

    = special price available at individual stores

    More info tickets can be found on the websites for PAK'nSAVE, New World and Four Square.

     

  • Unit pricing

    Unit pricing shows shoppers the cost of an item per weight, volume, or unit, making price comparisons easier.

    New government rules on unit pricing took effect on 31 August 2023. Physical grocery stores must comply by 31 August 2024, and online stores by 31 August 2025.

    Foodstuffs has used unit pricing for years, so this is about adjusting to meet the new regulations. We’re working through the details to ensure all affected stores and our online platforms are compliant within the transition period. 

  • Loyalty, rewards and data collection
    We've made our New World Clubcard loyalty programme terms and conditions easier to understand, including implementing changes to our New World Privacy Policy so it’s more customer friendly. We’ve also created a Clubcard FAQs webpage that shows how much must be spent instore to earn rewards points.

Price integrity 

We’re focused on continuing to ensure what customers see on the shelf is what they pay at the checkout.
  • Electronic shelf labels

    Shelf prices have traditionally been printed on paper or stickers and updated manually by staff.

    Electronic shelf labels (ESLs) are small, battery-powered displays that show product and pricing information. They use wireless technology to connect with the store’s central pricing system, ensuring prices are always up to date. 

    As at July 2024, 77 (67%) of our stores   across the South Island now have ESL systems in place. This includes 43 New World stores (100%),  12 PAK’nSAVE stores (100%) and 22 Four Square stores (37%).  

     
  • Price integrity monitoring
    Our stores are committed to ensuring all advertised prices and shelf prices are honoured at the checkout.  All New World and PAK’nSAVE stores have a Price Integrity Officer, responsible for checking shelf prices are accurate. 

    If a customer thinks they've been charged the wrong price, they should let us know, and we’ll refund them. 

Innovation

We continually invest in improving the shopping experience and keeping our supply chain efficient and strong.
  • Investment in our stores

    Every year we spend around $65 million on building new stores and renovating existing ones across the South Island. 

    Investments delivered in 2023 include:

    • New stores opened: PAK’nSAVE Papanui and On The Spot Northlake;
    • A range of improvements to existing stores including major refurbishments to Four Square Queenstown, New World Greymouth and upgrades at New World Gore, Four Square Reefton, Four Square Mapua, PAK’nSAVE Moorhouse, New World Motueka, New World Ashburton, New World Waimate and PAK’nSAVE Queenstown.

     
  • Supply chain improvements
    Maintaining a network that can supply 200+ stores and deliver 25,000 pallets of groceries every week requires ongoing investment, including major projects.

    Work is underway at our Hornby Distribution Centre where we are building a new facility to store more frozen goods. This new 2,500 sqm facility will feature an automatic crane system to move pallets.  
  • More options on shelves
    We stock more than 50,000 different products across our 200+ stores. These are sourced from suppliers of all shapes and sizes, including some of New Zealand’s most famous brands, the world’s largest global manufacturers and start-up Kiwi entrepreneurs who are looking to take on the world. We’re constantly looking for new products that offer consumers better value, higher quality and more choice, introducing 8,700 new products to our shelves each year.

Accountability

We’re working hard to mitigate the role we play in price movements at a time of high inflation.
  • Monitoring food price inflation

    Since May 2022, we've been tracking how our North and South Island co-ops' price changes compare to Stats NZ’s monthly food price inflation. We also keep customers informed about the factors driving price changes each month. 

    • • As at January 2024, we’d managed to keep our monthly food price increases below or equivalent to Stats NZ’s figure for 19 months in a row.  
     
  • Our Grocery Supplier Cost Index
    Since August 2022, Foodstuffs has commissioned independent economics firm Infometrics to produce the monthly Infometrics-Foodstuffs NZ Grocery Supplier Cost Index (GSCI), measuring the change in the cost of over 60,000 goods, charged by suppliers to our North Island and South Island co-ops.

Competition

We’ve been busy removing any barriers to market entry that are within our control, including freeing up land for retail development by others and offering a wholesale service to qualifying non-member wholesalers and retailers. 

Freeing up land for development

We know new supermarkets need a lot of land to build on and we don’t support any practices that hinder competition.
  • Removing land covenants
    We do not include restrictive covenants or lease exclusivity provisions in new property transactions and support the Commerce (Grocery Sector Covenants) Amendment Act 2022, which deems covenants unenforceable.

    We have removed 21 of the 22 historic covenants that Foodstuffs South Island had in place. The remaining covenant is registered against land we do not own. We are working with the landowner to arrange for removal.  

Offering wholesale supply

We support greater competition in the grocery industry via the establishment of a competitive wholesale grocery market and are committed to being an active participant.
  • Wholesale supply
    In October 2023, we started supplying our wholesale offering to qualifying wholesale customers, allowing retailers who are not members of our co-operative to apply to buy goods from our distribution centres, for on-sale to consumers. 

    This infographic shows how the Foodstuffs co-ops currently operate, and how our wholesale supply offering sits within that framework.

    As at July 2023, 680 suppliers have agreed to let their goods to be offered for sale via our wholesale service.

    Qualifying providers can apply to access our wholesale service here.   
     

Suppliers

We greatly value our relationships with the many growers, manufacturers and importers who provide the roughly 50,000 goods that stock our shelves. We work closely with our supply partners to ensure consumers benefit from competitive prices, quality and choice.

Upholding the Grocery Supply Code

We're committed to following the Grocery Supply Code of Conduct, which sets clear rules for working with suppliers to deliver better outcomes for customers.
  • Information
    The full text of the Grocery Industry Competition (Grocery Supply Code) Amendment Regulations 2023 (at 28 August 2023) can be viewed here.  
     
    A Commerce Commission factsheet summarising the Code (at 28 September 2023) is here. 
  • Helping our teams understand our Code obligations
    We've created resources to help our team understand their responsibilities under the Code, including booklets, flowcharts, and guidelines. We've also developed e-learning modules on key areas of the Code, with over 600 store team members completing 4,000+ sessions, totalling 500+ hours of training. 

    We regularly engage with the Grocery Commissioner’s team to ensure we are doing everything we can to uphold the spirit of the Code.  

Regular engagement with suppliers

We’ve continued our efforts to ensure we’re listening to our supplier partners, identifying any issues that need to be addressed, and ultimately helping them to succeed. 

We regularly engage with our suppliers to communicate what’s happening within the co-op. This includes customer insights, category review calendars and other important information.  

Supplier engagement happens through various other channels including: 

• Monthly supplier e-newsletters; 
• Regular online and in-person supplier update forums; 
• Virtual category forums, where we share category specific information; 
• Joint business planning, for suppliers that we have a large and multi-faceted relationship with;  
• Merchandise performance reviews for suppliers who we have a multi-faceted relationship with;
• Foodstuffs Emerge Competition, annual competition for small and new suppliers to gain access and support into our supermarket shelves

We are grateful to all of the suppliers who regularly engage with us, and we are committed to continually improving r relationships across our network.  

  • Biennial Supplier Expo

    Every two years, we host New Zealand’s largest B2B food show - Foodstuffs Expo. This two-day event is an opportunity for suppliers to connect with representatives from locally owned and operated New World, PAK’nSAVE, and Four Square stores across the country.

    Suppliers can showcase their products, allowing retailers to taste, test, and learn about new offerings from both local and international brands. It’s the biggest event of its kind in New Zealand’s food industry.

    Our March 2023 Supplier Expo welcomed 350 supplier brands, making it a key event for networking, discovery, and innovation.

  • Supplier surveys 
    We participate in the annual Advantage Group supplier survey. We take relevant learnings from the survey and apply them to our co-op, as appropriate.  
     
    Existing and prospective suppliers can find out more about being a Foodstuffs supplier on our Supplier Community webpage here.