Plan to ease food price pain at till

New World’s everyday low price strategy will be meaningful to some shoppers more than others, experts say.

Foodstuffs – which owns New World, Pak’nsave and Four Square – said the everyday low price (EDLP) strategy followed on from its price rollback introduced in May that had saved shoppers $13.8 million.

The bright blue ticket advertising a price reduction would be on hundreds of products customers bought weekly, including bread, cheese, butter and canned tomatoes.

The prices would be kept low and stable to provide more certainty around the cost of their shop, Foodstuff said.

Professor of agricultural economics at Lincoln University Alan Renwick said on the face of it, if the prices were low, and shoppers stuck to the scheme’s products then it could help them address the challenges of rising prices.

‘‘However, for others, any savings on the overall shop depends on what proportion of their shop is EDLP products and what happens to prices on products outside of these,’’ Renwick said.

Supermarkets had sophisticated pricing strategies that helped them maximise returns across the whole basket of goods shoppers bought, he said.

‘‘I would imagine for many households any potential savings will end up being small.’’

Foodstuffs said shoppers did not need to have a Clubcard to get the lower price, and brands and products on the scheme could differ from store to store.

The scheme made sense for New World because the supermarket duopoly meant it was not using the strategy to gain market share, Renwick said.

‘‘Rather, it may be seen at best as a goodwill gesture to existing customers or, more cynically, as a way to relieve some of the pressure that has been building up after the Commerce Commission study findings.’’

Christopher Walsh, director of Moneyhub, said the wide range of staples in the scheme would make it attractive to consumers.

‘‘New World’s commitment is most welcome at a time of uncertain food prices.

‘‘How much the typical New Zealander can save will depend on how they shop and what they’re prepared to eat. Your food bills will probably reduce if you’re prepared to eat what New World offers at their fixed or predictable prices,’’ Walsh said.

David Stewart, merchandise general at Foodstuffs North Island, said the process to select what was included on the scheme had been carefully worked through. ‘‘We wanted to be sure we were including items many of our customers eat and use almost every day.’’