Supermarkets less trusted than banks
AUCKLAND: New Zealanders now trust supermarkets less than the banking industry, Consumer New Zealand research has found.
The percentage of those who said they did not trust supermarkets has risen from 17% in June last year to 32%.
That was higher than for the banking industry, which 29% of those surveyed did not trust.
Consumer New Zealand chief executive Jon Duffy said the decline in trust in supermarkets was concerning.
‘‘It’s particularly concerning that consumer trust in a sector that is essential to our wellbeing as a nation, and is virtually impossible for consumers to do without, is seeing such a marked decline.’’
Mr Duffy pointed to the rising cost of living and the Commerce Commission’s supermarket sector study as drivers for the decline in trust.
‘‘The Commerce Commission’s study into the grocery sector found the duopoly is consistently making profits in excess of what it should,’’ he said.
‘‘Couple that with costofliving challenges, and no wonder there has been an erosion of trust in the supermarket industry.’’
Food prices rose 6.4% in the year to April and Consumer’s research found New Zealanders were preparing themselves to spend more on groceries.
In June last year a quarter (24%) expected their groceries to increase. By this April, more than 40% (43%) anticipated an increase in grocery expenditure.
Concern about the price of food has jumped significantly.
Groceries went from the eighthbiggest financial concern in June last year to thirdbiggest in April, beaten only by rent and mortgage payments.
Mr Duffy said Consumer New Zealand had also noted that in the past year, New Zealanders were incurring an increasing proportion of debt on essential items such as groceries and fuel.
Both major supermarket chains have recently taken steps to freeze or drop prices.
Earlier this month Countdown announced it would freeze the prices on 500 items over winter.
A week later, Foodstuffs, which operates Pak’nSave, New World and Four Square, said it would slash the price of food by an average of 10% across 110 items.
Mr Duffy said some of the moves by the supermarkets would be helpful for struggling consumers but more competition was needed. —