Source: Consumer NZ
Consumer NZ reveals that frequent supermarket promotions may not offer the savings consumers expect.
This analysis is based on an eight-week investigation into the pricing and frequency of specials on a basket of 22 essential grocery items across major supermarkets in Auckland, Wellington and Christchurch.
The real deal behind the specials
As shoppers scour store aisles for deals, they often encounter a sea of promotional labels, each store using its own lingo for price promotions.
Pak’nSave promotes “Everyday Low” and “Extra-Low” deals, while New World features “Super-Saver” specials, and Woolworths advertises “Low Price” and “Special” tags.
New World and Woolworths’ loyalty programme members can also swipe their cards for “Club Deals” or “Member Prices”.
But how much do these promotions really benefit consumers at the checkout?
“Our investigation shows that many items are frequently advertised as specials, but that doesn’t always mean they’re the lowest prices,” said Belinda Castles, Consumer researcher.
“For instance, at Woolworths Lower Hutt, 15 of the 22 tracked products were on special four or more times, while New World Hutt City had 13 items frequently on sale. Pak’nSave Lower Hutt maintained the lowest price for our basket of goods despite fewer specials.”
Promotional pitfalls
The report highlights that some items advertised as “specials” aren’t that special due to how long they remain at that price.
For example, Fresh’n Fruity yoghurt was priced as “Extra-Low” at Pak’nSave Papanui for all eight weeks of Consumer’s survey. The watchdog is concerned this misleads shoppers into believing the “Extra-low” price is for a limited time.
Consumer also found that one supermarket’s special might be another’s regular price. At New World Hutt City, Palmolive dishwashing liquid was marked at $2.79 as a “Super-Saver,” while at Pak’nSave, it was regularly priced between $2.39 and $2.99 without any special pricing.
Consumer confusion
Professor of marketing analytics at Massey University Bodo Lang told Consumer the excessive use of sales promotions makes it difficult to know what the usual price of a product is.
“Consumers are easily manipulated in a highly complex environment like a supermarket, where there are tens of thousands of products vying for shoppers’ attention,” he explained.
Last year, Consumer lodged a complaint with the Commerce Commission regarding misleading pricing and promotional practices and continues to advocate for clearer pricing models.
According to the Commerce Commission’s Retail Grocery Market Study, published in 2022, supermarkets planned to increase emphasis on everyday low pricing, rather than specials. However, the Grocery Commissioner’s first annual report found there hasn’t been a store-wide shift. Instead, a price freeze scheme has been adopted by individual stores as well as long-term discount promotions, such as Woolworths’ “Low Price” promotion.
Moving forward
Consumer emphasises the need for transparency and accountability in supermarket pricing.
“We support the idea of everyday low pricing to enhance consumer confidence that they are getting a genuinely good price,” said Consumer researcher Belinda Castles.
“Shoppers deserve to know they are getting a genuine deal, without the confusion of misleading specials.”
Consumer encourages consumers to report any misleading or confusing promotions to playfair@consumer.org.nz.
About the survey
This analysis tracked the online prices of 22 grocery items over eight weeks, including food, drinks and cleaning products. Fresh meat and produce and alcohol were excluded. The results highlight the importance of consumer awareness in navigating today’s supermarket landscape.
For more insights and access to the full findings, visit Consumer’s website: https://consumernz.cmail20.com/t/i-l-fjdvjy-iykkdduutr-j/
