Foodstuffs extends price roll back as high inflation continues to bite

Foodstuffs has extend its price ‘‘rollback’’ on its best-selling products for a further three months.

In May, New World, Pak ‘n Save and Four Squares rolled back prices of more than 110 products to what they were in early 2021, immediately reducing prices by an average of 10%.

The promotion was set to end on Monday but has been extended for a further three months.

Foodstuffs said, to date, the initiative had provided average savings of $1 million per week with 25 million rollback items sold nationally.

Butter at 2021 pricing has been the most popular product, with more than 3m blocks sold nationally in first 13 weeks.

Foodstuffs NZ managing director Chris Quin said many more ‘‘rolled back’’ items had been sold than expected and the savings offered had been larger.

In the four months since the price promotion began, the cost of groceries supplied to Foodstuffs from its suppliers had increased by an average of 7.9%, and New Zealand food price inflation had increased to 6.6% in June.

‘‘We estimated this initiative would save customers about $500,000 each week, so it’s been fantastic to see the actual savings come in at over double that,’’ Quin said.

‘‘To make sure we continue to support New Zealanders through this time of record inflation across the board, we’ll continue with rolled back prices on key everyday items.’’

Foodstuffs’ supermarkets was also developing a new pricing initiative.

‘‘We’ve continued working on long-term meaningful action that will mean customers can get low prices for longer at our supermarkets – an everyday low pricing strategy on the products we know matter the most to customers.’’

Simplifying pricing and promotions was one of the commitments Foodstuffs made after the Commerce Commission’s market study into the grocery sector.

Earlier this week, Infometrics released the Grocery Supply Cost Index, which showed record increases in the cost of grocery products supplied to Foodstuffs in 2022.

Supplier costs were up 7.9%. These make up 68 cents of every retail dollar in the supermarket.

‘‘Like any retail business, we’re focussed on buying well right now to keep costs down,’’ Quin said.

‘‘We know New Zealanders are facing record household cost increases across the board, so we’re working hard to deliver value within the 19 cents of every retail dollar on the supermarket shelf we’re responsible for by finding efficiencies in our business and not adding costs.’’

For the financial year in 2021, Foodstuffs North Island’s revenue from sales was $7.4 billion, while Foodstuffs South Island made $3.28b.