NEW ZEALAND | Deep discounting may encourage shoppers to try unfamiliar brands, but new research suggests it can also make them reluctant to purchase those same products at their regular shelf price.
The 2026 New Zealand Grocery Shopper Report from Focus Insights found that 67 percent of respondents would wait for another promotion rather than pay full price for a brand regularly discounted by 40 percent or more.
Even after trying and liking the product, only 13 percent said they would purchase it again at the normal price. Almost half, 46 percent, would only repurchase when discounted, while another 21 percent would wait for a substantial discount and stock up.
The findings raise questions for suppliers about the longer-term value of promotions, particularly when frequent discounting becomes part of consumers' expectations.
Promotional shopping is firmly established among New Zealand consumers. The September survey of 1,002 shoppers found that 64 percent shopped mostly or often on promotion, with 32 percent saying promotions almost always influenced their purchasing decisions, up from 28 percent in 2025.
Straightforward price discounts remained the preferred promotional mechanism for 52 percent of respondents, compared with 26 percent who favoured everyday low prices.
The research also explored how repeated deep discounts influenced perceptions of a product's value.
More than half of respondents, 55 percent, agreed that regular discounts of 40 percent or more made the normal price feel like poor value. Another 54 percent said they would purchase more than they needed and stock up during promotions.
For manufacturers, the concern is not simply the reduced margin on promotional sales. If shoppers become accustomed to purchasing a product only when discounted, its regular shelf price may become increasingly difficult to sustain.
Discounts still have an important role in attracting new customers. Some 70 percent agreed that a discount of 40 percent or more encouraged them to try a brand.
However, encouraging trial and securing repeat purchases at a commercially sustainable price are different challenges.
The research also found that 26 percent of respondents identified better value for money as a leading reason for switching brands, followed by a lower regular price at 25 percent and a strong promotional offer at 24 percent.
Focus Insights Chief Executive Officer Deane Hubball described value as "a trade-off shoppers make every trip, across cost, proof, control and purpose."
For suppliers negotiating promotional activity with supermarket buyers, the findings suggest that discount depth and frequency deserve careful consideration alongside sales volumes.
A successful promotion may deliver a short-term increase in sales, but the longer-term measure is whether customers continue purchasing once the shelf price returns to normal.
With shoppers increasingly comfortable waiting for the next special, manufacturers face a difficult commercial decision: how much discounting is necessary to remain competitive, and at what point does it begin to undermine the value of the brand?
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