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Foodstuffs says it kept grocery price increases below the inflation rate

(Source: Michael Bradley)

Foodstuffs says it kept grocery price rises at a level below New Zealand’s inflation rate in May. 

Citing data from Statistics New Zealand, Foodstuffs says the price of a basket of goods measured in the Food Price Index in May rose by 4.7 per cent at Pak’NSave, New World and Four Square stores. That compares with a 6.8 per cent rise in food prices nationally. 

In a statement published online the grocery giant said the more modest increase was due to a “focus on delivering value to customers, despite ongoing cost pressures”.

Foodstuffs said the average cost increase from suppliers for the same basket rose by 6.9 per cent for the month. 

“We looked at the actual impact in May for our Pak’NSave, New World and Four Square customers and for the same FPI basket, the retail price to Foodstuffs customers increased 4.7 per cent (based on the average FPI weighted sales) due to the impact of our Price Rollback Initiative and the co-operatives’ ongoing focus on value,” the company said. 

“In this period, we’ve made good inroads in addressing prices in the face of inflation and supplier price increases and have managed to keep price increases 2.1 per cent less than food price inflation.”

Foodstuffs said it achieved the effect by reviewing every aspect of its costs within its 19 per cent gross margin. 

“We are buying well and finding efficiencies in our business and helping New Zealanders find value.”

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