Marion van Dijk / Stuff
New World’s every day low price scheme follows on from it price rollback introduced in May.
New World’s “every day low price” strategy will be more meaningful to some shoppers than others, experts say.
Foodstuffs, which owns New World, Pak ‘n Save and Four Square, said the every day low price (EDLP) strategy followed on from its price rollback introduced in May and had saved shoppers $ 13.8 million.
A bright blue ticket advertising a price reduction would be on hundreds of products customers bought weekly, including bread, cheese, butter, and canned tomatoes.
The prices would be kept low and stable, to provide more certainty around the cost of their shop, Foodstuffs said.
A professor of agricultural economics at Lincoln University, Alan Renwick, said if the promotion ensured prices on the selected products stayed low, it should help cost-conscious consumers.
“However, for others, any savings on the overall shop depends on what proportion of their shop is EDLP products and what happens to prices on products outside of these,” he said.
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Supermarkets had sophisticated pricing strategies that helped them maximise returns across the whole basket of goods shoppers bought, he said.
“I would imagine for many households any potential savings will end up being small.”
Foodstuffs said shoppers did not need to have one of its loyalty Clubcards to get the lower prices, and brands and products in the scheme could differ from store to store and by region.
Renwick said that rather than being aimed at gaining market share, the pricing “may be seen at best as a goodwill gesture to existing customers, or more cynically, as a way to relieve some of the pressure that has been building up after the Commerce Commission study findings “.
Christopher Walsh, director of the financial information website MoneyHub, said the wide range of staples in the scheme would make it attractive to consumers.
“New World’s commitment is most welcome at a time of uncertain food prices.
“How much the typical New Zealander can save will depend on how they shop and what they’re prepared to eat. Your food bills will probably reduce if you’re prepared to eat what New World offers at their fixed or predictable prices,” Walsh said.
David Stewart, merchandise general manager at Foodstuffs North Island, said the process to select what was included in the scheme had been carefully worked through using customer insights.
“To make a meaningful difference we wanted to be sure we were including items many of our customers eat and use almost every day.
“We’ve used customer insights from across the country to ensure we get a good balance of products and in time we intend to continue to expand the range.”