In October, Foodstuffs found that customers purchased few goods across all categories except frozen foods. Half of the cooperative's customers reported cutting back on non-essential items, and two in five reported switching to cheaper brands.
“Broad-based cost pressures are still building for everyone growing, manufacturing and retailing food, baking in the conditions for inflation to continue well into 2023. Half of our customers describe their financial situation as ‘precarious’. Overall, we’re seeing customers buying less, cutting out non-essential items, buying cheaper brands and shopping around to get the best deals. Our latest Customer Insights Survey shows an increase in the numbers of customers changing how they shop to stretch their food budget further,” said Chris Quin, Foodstuffs NZ Managing Director.
Stores in the Foodstuffs co-operatives hold price increases to customers below inflation and below supplier cost increases for six months in a row.
In October, the average cost increase from suppliers to the Foodstuffs co-operatives on the same products measured in the FPI basket was 10.4 percent. On the same products, the retail price increase to Foodstuffs customers was 7.4 percent - meaning the co-operatives’ members held prices in their stores at 2.7 percent less than inflation in October and three percent below cost increases from suppliers on the FPI basket.
“We’re heading into the busiest trading period and the big challenges facing our co-operatives in fighting inflation for our customers are still acute labour shortages and record increases in the cost of goods we buy to put on shelf. As well as the international events still keeping food prices at record highs, our sector from paddock to plate is at the front line of impacts resulting from the extreme shortage of labour in New Zealand, including rising costs, constrained production and our ability to get food on shelves.”
With summer around the corner, Foodstuffs have encouraged customers to shop seasonally for fresh fruit and vegetables. The cooperative is also looking to broaden its price Rollback at PAK’nSAVE and Every Day Low Prices at New World.
