The two biggest supermarket chains have addressed complaints that they are hiking up their prices amidst the Covid-19 pandemic.
A supermarket in central Wellington on the morning of 26 March, on the first day of the nationwide Covid-19 lockdown. Photo: RNZ / Dom Thomas
Over the past week, people have taken to social media to complain that the cost of their shopping has significantly increased.
In response to online complaints, the government has set up an email - pricewatch@mbie.govt.nz - for people to report any cases of price gouging by essential businesses that are open during the lockdown.
Both Foodstuffs and Countdown have indicated that the difference in prices may be due to promotions.
On New World's pricing, Foodstuffs said prior to Covid-19 in an average week approximately 45 percent of items bought by customers would be on promotion, in the last week this number dropped slightly to 40 percent.
Foodstuffs North Island chief executive Chris Quin said on a normal week New World would have close to 5000 items on sale.
"In the last week we had 4800 products on promotion, which considering the incredible circumstances we have found ourselves in is a phenomenal effort both from our suppliers, the New World team and our supply chain," he said.
He said it is also important to remember the country is coming out of a long hot summer, one which put a large part of New Zealand into drought.
We are committed to doing our level best to keep prices low, but the reality exists that if you buy a cauliflower in March you are buying it out of season, on the back of a drought and it will not be cheap, he said.
"Broccoli on the other hand, is a great buy at the moment."
- If you have symptoms of the coronavirus, call the NZ Covid-19 Healthline on 0800 358 5453 (+64 9 358 5453 for international SIMs) or call your GP - don't show up at a medical centre
Foodstuffs South Island chief executive Steve Anderson said they are working closely with suppliers to keep promotions going.
"Next week we are looking at group-wide promotions which are just slightly down from normal.
"This is driven by the fact suppliers simply do not have enough products to deliver on normal promotional levels - they are either out of stock or nearly out of stock."
Foodstuffs says Pak 'n Save nationally continues to have New Zealand's lowest grocery prices.
Meanwhile, Countdown have stated that customers will start to see short-term specials and promotions return over this week and next as the supply chain re-builds and customer demand evens out.
Managing director Natalie Davis said re-introducing specials is a high priority for the business.
"This week our customers will see specials return across produce from today, meat and Easter specials from Wednesday, and the following week from 6 April a broader promotional programme will return across the store," she said.
This afternoon, Prime Minister Jacinda Ardern announced that the government has set up an email for people to report any cases of price gouging by essential businesses that are open during the lockdown.
She said officials have been in contact with the major supermarkets daily and found no evidence of price gouging.
However, Ardern said anyone with concerns or reports of price gouging can send it to the email pricewatch@mbie.govt.nz.
"I've already seen some reports made online on social media, now I ask those individuals if you can specifically send those reports, say a copy of your receipt, a simple photo of what you've seen, directly through to MBIE [Ministry of Business, Innovation and Employment], this will enable us to make sure that we're properly investigating any reports of price gouging."
Ardern said nobody wants to see businesses take unfair financial advantage during this extraordinary time.
Read more about the Covid-19 coronavirus:
- See all RNZ Covid-19 news
- Government clarifies essential services during lockdown
- Covid-19 alert system: What you need to know
- Covid-19 symptoms: What they are and how they make you feel
- Touching your Face: Why do we do it and how to stop
- Scientific hand-washing advice to avoid infection
- The Coronavirus Podcast
