Foodstuffs to cut prices of some staples

Supermarket operator Foodstuffs says it will reduce the price of 110 of the most purchased grocery items by an average of 10%.

Foodstuffs, which operates the New World, Pak’nsave and Four Square brands, said it would reduce the prices on items to what they averaged during the 13 weeks between January 25 and April 25 last year.

It estimated the move would save customers more than $500,000 a week. For the financial year in 2021, Foodstuffs North Island revenue from sales was $7.4 billion, while Foodstuffs South Island made $3.28b.

Foodstuffs NZ managing director Chris Quin said, in light of rising food prices, it had identified products that customers bought most often and would be reducing them from Monday to August 14.

The items included frozen and fresh fruit and vegetables, meat and dairy products like butter and cheese, tea, coffee, sugar, flour, and personal care items like nappies and soap. Seasonal fresh fruit and vegetables, like broccoli and spinach, were not included, Quin said.

Quin said customers shopping at New World in the North Island would see Value white toast, 600g, reduce from $1.50 to $1.19, a 1kg block of Pams edam cheese reduce from $11.55 to $9.99, and a 1kg of Value frozen mixed vegetables reduce from $2.59 to $2.19.

In South Island New World stores, some examples of products in the rollback included 185g Sealord Tuna reducing from $3.39 to $2.79, and 1.5kg Pams rolled oats reducing from $4.29 to $3.94. The items will be labelled in store and online under ‘‘rollback’’.

The full list of items would be available on Monday.

Quin said that across Foodstuffs North Island over the past four months, the average number of products with supplier price increases each month had been 3300, representing a 357% increase, compared with the monthly average for the same time period over the past three years.

Last week, Countdown announced it was freezing the prices on more than 600 essential items throughout winter. But it came under fire after the list did not feature any fresh milk or dried pasta, frozen vegetables, or personal care items like toilet paper, nappies, toothpaste or soap.

Consumer NZ launched a petition on Tuesday, calling for the Commerce and Consumer Affairs Minister, David Clark, to go beyond the Commerce Commission’s recommendations in its report on the grocery sector in order to bring about stronger competition.