Frequent supermarket promotions may not offer the savings consumers expect due to the confusion and lack of transparency from supermarket operators.
According to Consumer NZ‘s eight-week investigation into 22 key grocery items at major supermarkets in Auckland, Wellington, and Christchurch, retailers employ their own language for price promotions, which fails to indicate the products are at their lowest price.
Loyalty programs, such as New World’s Club Deals or Woolworths’ Member Prices rely on customers swiping shoppers’ cards, whereas Pak’nSave Lower Hutt maintained the lowest price despite fewer promotions.
The survey also points out that certain things advertised as “specials” aren’t particularly special because of how long they stay at that price.
Customers also discovered that one supermarket’s promotion could be another’s usual pricing. For example, Palmolive dishwashing liquid was listed as a “Super-Saver” at New World Hutt City for $2.79, however at Pak’nSave, it was usually priced between $2.39 and $2.99 with no special pricing.
In addition, the frequent use of sales promotions makes it impossible to determine a product’s average price.
“Consumers are easily manipulated in a highly complex environment like a supermarket, where there are tens of thousands of products vying for shoppers’ attention,” said professor of marketing analytics at Massey University Bodo Lang.
Consumer researcher Belinda Castles adds that consumers deserve to know they are getting real deals, “without the confusion of misleading specials”.