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?

To help customers find the best value, the report recommended we ensure our pricing and promotional practices, and the terms and conditions of our loyalty programme and privacy policy, are simple and easy to understand.

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).

Loyalty programme and privacy policy

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.

Clubcard FAQs

Adding FAQs to the Clubcard page.

Privacy policy

We are also taking the opportunity to review and simplify our Privacy Policy which sits across our websites. It sets out the types of data we collect from customers, why we collect it and how it is used.

Clubcard rewards

 

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

 

 

Unit pricing

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 changes
Index 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?

To help customers find the best value, the report recommended that we ensure our pricing and promotional practices, and the terms and conditions of our loyalty programme and privacy policy, are simple and easy to understand.

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.

Wholesale

Wholesale supply

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.

Wholesale model

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.

Industry participation

We have increased engagement with supplier partners –Foodies Forums, supplier survey and supplier working group.

Training

Additional training already underway with our merchandising team to prepare for code.