Supermarkets in New Zealand will now be required to “clearly and consistently” display unit pricing for grocery products – such as the price of a product per litre or kilogram – making it easier for consumers to compare prices at the supermarket.
The new regulations will come into effect at the end of August.
Last year, the government announced that it would introduce a mandatory standard for unit pricing in response to the Commerce Commission’s third competition study into the retail grocery sector.
“New unit pricing regulations are a step forward in the government’s wider work to increase competition in the retail grocery sector,” said Duncan Webb, Consumer Affairs Minister.
“This helps determine whether tomatoes are cheaper at $6.99 per 500g punnet, $10.49 for a 700g bag, or $11.99 a kilo, so much easier for Kiwi shoppers.”
Unit price is the price per standard unit of measurement, often displayed with the product’s retail price. For example, a 700-gram loaf of bread sold for $3.99 would have a unit price of $0.57 per 100 grams.
The new regulations will apply to stores that sell bread, dairy products, eggs or eggs products, fruit, vegetables, meat, fish, rice, sugar, and manufacturer-packaged food.
“Unit pricing will support inter-brand competition and encourage grocery retailers to compete on best value for money, benefitting customers in the long term,” added Webb.
“This (regulation) will help Kiwis make informed choices to suit their shopping needs, and is particularly helpful where products are sold in different sized packaging and by various brands.”
Unit pricing will be compulsory in online grocery stores, physical grocery stores with a floor space of 1000sqm, and smaller physical grocery stores that choose to show unit pricing.
While the regulations come into force at the end of August, retailers will be given a transitional period to put the required systems in place.
Physical stores will be required to display unit pricing 12 months after the regulations come into force in August 2024, while online stores will be required to display unit pricing 24 months after the regulations come into force in 2025.
