Foodstuffs South Island announced that it has been working hard to provide New Zealanders with value and choice, following the release of the Commerce Commission’s Annual Grocery Report.
FSSI CEO Mary Devine said the co-op’s focus has been, and remains, on delivering for customers in all corners of the South Island and on building enduring, trusted supplier relationships.
Service and value are central to what we do.
“The South Island includes many smaller and more remote communities where customers have fewer grocery shopping options than those living in larger centres,” said Devine.
“Our co-operative model helps us continue serving those communities while working hard to keep prices as low as possible and ensuring people have access to the essentials they need.”
Devine added that navigating the challenging cost environment across the grocery supply chain was a delicate balance; customers remained at the forefront of the co-operative's decisions.
Throughout FY25, input costs across the grocery supply chain remained high, including freight and energy costs. Moderate margin changes are due to a mix of factors rather than a single decision, but overall, reflect a concerted effort to buy better and our focus on customer‑centric ranging.
Devine said FSSI has a high level of appreciation for the greater regulatory requirements in the grocery sector, and that the co-op is working hard to ensure expectations are met for the benefit of customers.
“We are continuing to invest in the systems, technology and training that help customers all around the South Island shop with confidence, while making solid progress on new regulatory standards,” she added.
“I am grateful to suppliers for working through required changes constructively with us. It has been a significant shift, and we’ve appreciated the way suppliers have engaged to ensure we meet both the requirements and the intent of the Grocery Supply Code.”
Continued investment, she said, was particularly important in a region like the South Island, where geography and scale create additional complexity in keeping stores supplied and prices competitive.
“We have supermarkets in cities and major towns, but also 37 stores that serve communities of less than 5,000 people, 56 that serve communities with fewer than 10,000 people. Serving South Islanders is a responsibility we take seriously,” she said.
Grocery Supplier Survey
FSSI acknowledged the Commerce Commission’s 2026 Grocery Supplier Survey Report and values the opportunity it provides to hear directly from suppliers about their experiences across the sector.
Devine said she was pleased with the progress highlighted in the report, particularly regarding the overall experience rating from small and medium-sized suppliers, and was committed to continuing the collaborative approach for all suppliers.
“This is an important snapshot for the sector, and it reinforces that strong, constructive supplier relationships are built on collaboration, mutual trust and shared goals.”
Devine said the emphasis FSSI puts on partnership was no more evident than at the co-op’s annual Foodies Forum at Te Kaha - One NZ Stadium in Christchurch last week, which saw more than 500 people representing about 250 suppliers from around New Zealand attend.
“Partnership is at the heart of the Foodstuffs South Island Co-op. We know suppliers ultimately judge us on how we deliver day-to-day, and leading a relentless focus on customers is where our priority remains.”
