Foodstuffs North Island has released its third quarterly update on implementing Commerce Commission recommendations. In April, the co-op launched a reporting dashboard to track progress on recommendations. In July, changes were made to PAK’nSAVE price ticketing, and Everyday Low Prices were introduced in all New World stores. New World has also seen enhancements to Clubcard terms and conditions, and the co-op changed the Privacy policy.
“Foodstuffs North Island is accountable for the delivery of all the Commission’s recommendations to improve competition in the retail grocery sector. On pricing and promotions, we’ve committed to clear, consistent and simple price ticketing on shelf so our customers know what’s on special and where they can save every day when they shop with us. The extensive work underway to introduce a new and simpler pricing and promotions structure at PAK’nSAVE and New World is well advanced,” said Chris Quin, FSNI Chief Executive.
The cooperative has a dedicated team working on developing a wholesale offering for retailers that aren’t members, and to date, almost 100 retailers have been engaged with.
“We’ve also written to all suppliers seeking their agreement to have their products included in a wholesale offer to retailers outside of our co-op. We’ll continue working hard to quickly get this up and running while ensuring that we’re taking the necessary time to get it right.”
In August of 2021, the commitment was made to end the use of restrictive land covenants and exclusivity provisions on leases while starting the process to identify and remove all existing ones.
“While that process is underway, no covenant or exclusivity provision has or will be enforced. The technical process required to identify and remove all restrictive covenants continues at pace.”
The Infometrics-Foodstuffs New Zealand Grocery Supplier Cost Index (GSCI) was introduced in August, so customers get a full picture of food cost changes, and the cooperative has held price increases below inflation levels for five months consistently.
“Profitability was not the smoking gun the Commission had first thought in its draft report. That’s why, after 18 months of detailed investigation, the Commission shared a set of final recommendations it said were proportionate and would genuinely improve competition in our sector – the stated aim of the market study.
“We’re committed to keep providing updates each quarter on our work to action all of the Commission’s recommendations to ensure that our customers are getting value at the checkout. We know we’re accountable to New Zealanders on this.
“The substantial change that is happening as a result of the Commission’s recommendations to improve competition from the market study is good for the industry, good for customers, and good for New Zealand.”
