End dodgy 'specials'
Are supermarkets hiking non-member prices to make loyalty deals more appealing? Help us call out misleading pricing.
Send your examples of member vs non-member pricingHelp us look into member vs non-member pricing
Supporters have recently shared their concerns that the non-member prices at their supermarket have been hiked to make the loyalty price seem like a great deal. If you've seen a big difference between member and non-member prices, take a photo and share it with us – we want to dig into this further and will collect evidence until 19 April 2024.
Send your examplesLast year we asked people to share examples of problematic pricing at the supermarket.
We received over 600+ examples of dodgy pricing at the supermarket, from everyday New Zealanders across Aotearoa. Thanks to eagle-eyed shoppers, we compiled the evidence and lodged a complaint with the Commerce Commission, the Commission is now investigating Foodstuffs and Woolworths to find out whether their pricing and promotional practices comply with the Fair Trading Act.
Thanks to everyone who kept their eyes peeled on their weekly shop.
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We need more competition to bring down prices.
We’ve been calling for ten fixes to make the supermarket industry truly competitive. Many of these are now happening, including:
- A mandatory code of conduct
- Appointing a Grocery Commissioner
- Improved access to goods at wholesale prices for other retailers
- Banning land covenants that prevent competitors from setting up shop
- Mandatory unit pricing.
This is great progress, but our work isn't done yet.
The story so far
1948: The country's first self-service grocery store 'Four Square' opens.
Late 1950s: The first Woolworths opens Foodtown.
1950s - 2000s: New Zealand enjoys a diversity of supermarkets over the decades, from Price Chopper to Pak'N'Save to Super Value.
2002: Supermarket choices dwindle as larger players buy up smaller retailers, until the duopoly is officially born when Progressive and Woolworths merge.
2000s - 2010s: New Zealand has one of the most concentrated grocery retailing sectors in the world with Foodstuffs and Woolworths now controlling at least 80% of the market. Complaints about the cost of food, as well as a lack of clarity around pricing, concerns for supplier treatment and impediments to new entrants entering the market grow louder.
November 2020: The Commerce Commission launches a market study to see if competition is working well in the grocery sector.
March 2022: The final report is released and confirms duopoly are making profits in excessive profits of $1 million a day at the expense of New Zealanders. A variety of recommendations to increase competition are made by the Commission.
May 2022: Consumer NZ launches a petition for the government to go beyond the recommendations, which receives 78,000 signatures.
July 2022: The Government indicates it will go further than Commerce Commission’s recommendations, with various measures underway to encourage healthier supermarket competition.
August 2022: The Government gives the duopoly a year to reach a supply agreement with wholesale customers, or be forced to sell at set prices by a regulator.
July 2023: The Grocery Industry Competition Act came into force, giving the Commerce Commission new powers to monitor and regulate the grocery sector.
July 2023: The Commerce Commission appoints Pierre van Heerden as New Zealand's first Grocery Commissioner.
August 2023: Consumer NZ lodges a complaint with the Commerce Commission about potential breaches of the Fair Trading Act by the major supermarkets.
January 2024: The Commerce Commission has opened an investigation into Woolworths, Foodstuffs North Island and Foodstuffs South Island following Consumer's complaint.
In the media
More than 300 ‘dodgy’ supermarket deals uncovered by Consumer NZ
Stuff, 6 April 2023
Consumer NZ complains to Commerce Commission about 'misleading' supermarket pricing
Stuff, 3 August 2023
Commerce Commission to investigate supermarket duopoly: Woolworths, Foodstuffs
NZ Herald, 22 Jan 2024
Consumer NZ warns of pitfalls of supermarket loyalty schemes
RNZ, 1 February 2024