Woolworths has said that contrary to popular “misconception” Kiwi shoppers pay less for their groceries than the Brits or Aussies.
However, a 2022 Commerce Commission study found that there was little competition in the New Zealand supermarket sector and said that NZ grocery prices appear high by international standards.
Woolworths has now published a paper that claims Kiwi households are getting a good deal from its supermarkets.
“The fact is, New Zealand grocery prices are cheaper than comparable countries when we take into account GST.”
And said “Woolworths New Zealand profits have been in decline and currently lag behind our global peers.”
The paper also said New Zealanders pay less for a basket of 20 common household items compared to shoppers in Australia and the UK, however, it did not name the items or publish the calculations.
There have been calls for the big supermarket operators to be split up, but Woolworths responded, saying, “Breaking up the grocery sector would push shopping bills higher.”
Finance Minister Nicola Willis has been outspoken about the rise of grocery prices and said the Government is on the side of Kiwi shoppers and they will act to defend their interests.
“Kiwi shoppers are being poorly served by a market effectively dominated by just two major players – Foodstuffs and Woolworths. This lack of competition is the result of a series of mergers that have occurred over the past 30 or 40 years,” Willis said in March.
Photo Credit: NZ Consumer
