Foodstuffs South Island's Market Study Dashboard
The Government has confirmed the actions it plans to take in response to the Commerce Commission’s final report on the Market Study into the retail grocery sector. Foodstuffs South Island have been actively engaged in the Market Study process, working constructively with the Commission and MBIE, and actioning a number of initiatives that improve the shopping experience for our customers. Here’s how we’re going as at July 2022.
How are we helping customers find the best value?
Pricing and promotions
Together with Foodstuffs North Island, we’re working to simplify our pricing and promotions nationwide.
New and simpler pricing
Work is underway right now to introduce a new and simpler pricing and promotions structure at PAK’nSAVE, New World and Four Square. This is on track to be delivered in the second half of 2022. We’re actively working on providing more consistent pricing for our customers by increasing the number of products we have on-shelf at everyday low price (EDLP).
Moving away from promotions
Providing consistent pricing by increasing the number of products at everyday low price (EDLP).
Together with Foodstuffs North Island, we’re working to ensure our loyalty programme and data collection and user practices are clear and transparent.
Clubcard terms and conditions
We’re in the process of updating the New World Clubcard Terms & Conditions to ensure our data collection and user practices are clear and transparent. We are also preparing a simple fact sheet covering the main points a customer should be aware of when signing up or reviewing their membership.
|Programme||Qualifying spend (NZD)||Rewards earned||Conversion|
|Airpoints||$25||0.185||$150 = 1.11 Airpoints Dollar|
|Flybuys||$25||1||1 Flybuys earned = 1 Point
28 Flybuys earned = $5 New World Dollars
4 Flybuys earned = 3c off per litre up to 50L at Z and Caltex
MBIE has released a Discussion Paper on introducing a mandatory Unit Pricing regime in New Zealand for Grocery retailers. We are currently preparing a submission on that paper supporting in principle the introduction of such a regime and highlighting a number of areas for careful consideration.
Engaging with MBIE
Working with MBIE toward industry-wide standards.
Comparison with Australia
Carried out internal review of our current unit pricing practices to see how we compare to the Australian Unit Pricing Code.
More unit pricing
Increased quantum of products showing unit pricing.
Price comparison services
We have reached out to price comparison websites to ask if they have questions regarding access to our product range.
Grocery Price Index
In a first for NZ’s supermarket industry, and to support our work to get best value for New Zealanders, we’ve engaged an independent economic consultancy to develop a monthly grocery index using Foodstuffs real-time data to show price changes and the drivers behind them.
Monthly grocery price changesIndex will provide customers with a detailed understanding about grocery price changes and the drivers behind them.
How are we making sure there’s a level playing field for our competitors?
Freeing up land for supermarket development
We note the passing of the passing of the Commerce (Grocery Sector Covenants) Amendment Act 2022 which makes grocery sector land covenants unenforceable. We are committed to taking steps to remove the restrictive covenants that are in place.
We support the Government’s direction that there is an active wholesale market. We are currently engaged with MBIE officials in a positive and constructive manner with regard to how that would operate. In that regard we are investigating the structure required to support wholesale supply to retailers.
Engaging with MBIE
Engaging with MBIE on wholesale supply.
We are working on developing the structure required to support wholesale supply to retailers. This includes the principles, criteria, terms and conditions and procedures to process requests for wholesale supply.
How are we improving our relationships with suppliers?
We support a mandatory code of conduct with an independent regulator that will improve outcomes for suppliers and customers.
Code of conduct
Code of conduct
We have been working with MBIE on the development of a consultation document.
We have increased engagement with supplier partners –Foodies Forums, supplier survey and supplier working group.
Additional training already underway with our merchandising team to prepare for code.