Consumer NZ has called for stronger regulation of supermarket pricing and promotional practices following its new survey on supermarkets.
The Consumer’s NZ Grocery Survey, conducted in mid-April, revealed a strong public appetite for government action to improve access to affordable food.
Many respondents called for clear and effective government intervention, while also expressing low confidence in its ability to deliver on this goal.
“New Zealanders are struggling to access quality food at affordable prices, and they’re not seeing meaningful change at the checkout,” said Consumer NZ chief executive Jon Duffy.
“We’re pleased the government has kicked off a request for information process to explore how new entrants could help increase competition and deliver better grocery prices for New Zealanders. But the urgency is real.”
The survey also revealed the growing impact of rising prices on households. Thirty percent of people have needed help over the past year to get food, for example, from food banks, friends, family or Work and Income, based on the survey results.
The cost of living remains the highest concern for New Zealanders across all age groups and has been for three years, according to its Sentiment Tracker.
The nationally representative survey shows that most New Zealanders do not believe the government is doing enough to keep food affordable. Two-thirds of people reported having low confidence in current government policies, while only 9 percent expressed high confidence in government action.
These results offer valuable insights into recent trends in public trust in supermarkets and the government, as reflected in Consumer NZ's Sentiment Tracker.
Shoppers also report a decline in trust in supermarkets to price and promote products fairly, an issue that raises additional concerns about consumer protection.
When asked in the Grocery Survey what could be done to keep food accessible, hundreds of respondents said food is simply too expensive and urgent action is needed. Many supported stronger regulation and clearer rules to prevent misleading promotions, rather than just increased competition in the sector.
“Consumers want the government to take a harder line, not only in promoting competition, but also in actively regulating how prices are set and how promotions are run.”
Consumers are increasingly adopting cost-saving strategies, such as shopping around and buying in bulk, to cope with rising food prices and growing pressure on household budgets.
More than half of respondents said they compare prices across supermarkets - most commonly through supermarket websites or apps, rather than in-store checks. This behaviour signals the need for unit pricing and easy price comparison across retailers.
Perceptions of supermarket loyalty programmes are divided. Nearly two in five consumers believe loyalty schemes offer little or no benefit, while around one in three consider them worthwhile.
“Consumers are rightly questioning the real value of loyalty programmes. Our research found 84 percent of New Zealanders use loyalty cards, but the so-called ‘specials’ don’t always reflect the lowest prices available at the checkout.”
While the Commerce Commission has not recommended a full review of loyalty programmes, it has called on supermarkets to ensure transparency in how data is collected and used, and to disclose the terms of these schemes clearly.
“We are hearing loud and clear that shoppers feel unsupported and are losing trust, not just in supermarkets, but in the laws and systems that are meant to protect them. To restore confidence, we need tougher regulation and greater enforcement to tackle pricing practices and market power in New Zealand’s grocery sector.”
Consumer NZ continued to push for measures that ensure fairer pricing, improved transparency, and increased competition in the supermarket industry.
“There’s increasing discomfort with how data is being used in loyalty schemes, and whether the deals offered actually benefit the consumer.”
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