Savvy shoppers saving - survey
BY BEN HEATHER
Where do you buy your fruit and veges from?
Relevant offers
Industries
Christchurch shoppers are wising up to big supermarkets "raking it in", looking for better deals at smaller specialist food stores, a new study says.
A Lincoln University study says while Foodstuffs dominates the Christchurch market, with New World and Pak 'n' Save comprising more than half of all supermarket visits, specialist stores were making inroads on their bigger competitors.
Of the 629 Christchurch households surveyed, 68 per cent said they bought their vegetables and fruit at specialist stores compared with just 15 per cent in a similar study in 1996.
Specialist butchers were also more popular, with 52 per cent of those surveyed saying they bought their meat at butcher shops compared with about 10 per cent in 1996.
Lincoln University Associate Professor Charles Lamb, who heads the business management department, said yesterday the rise of specialist food stores could be considered a direct response to increased profits by New Zealands's supermarket duopoly.
"The big corporates have been raking it in for quite some time, and all of a sudden they've been caught with their pants down," he said.
Of those surveyed, 34 per cent said cheaper food was the main reason for buying vegetables and fruit at a specialist stores, indicating smaller stores were managing to undercut the big supermarkets despite having less buying power, Lamb said.
"These alternative places are having quite an impact."
Asian food markets had also gained ground on conventional supermarkets, he said.
Foodstuffs, which owns Pak 'n' Save and New World, and Progressive Enterprises, which runs Foodtown, Countdown and Woolworths, account for 95 per cent of the market.
Organisation for Economic Co-operation and Development (OECD) figures released last November show New Zealand's food prices had risen 42.5 per cent since 2000, well above the OECD average of 33 per cent and ahead of Australia, the United States and Britain.
At the time, some commentators blamed Progressive and Foodstuffs' market duopoly for the price rises, an accusation both firms denied.
Yesterday, Foodstuffs chief executive Steve Anderson again dismissed claims a supermarket duopoly was inflating food prices, pointing to Statistics New Zealand figures showing food prices had fallen 1.3 per cent in February.
While the recession had adversely affected fruit and vegetables sales, no evidence existed of an exodus of shoppers to speciality stores, he said.
"I think any perceived change in consumer behaviour is a result of the recession, rather than the belief that we are profiteering." Part of this could be attributed to more people setting up vegetable gardens at home or bargain hunting for lower-quality produce at other outlets.
The survey shows Raeward Fresh is the most popular alternative produce store in Christchurch, with five shops in Christchurch and Nelson, including a butchery.
Chief executive Mike Barnett said Raeward Fresh did remain price competitive, but he would not comment on whether big supermarkets were profiteering. "Their buying power is massive, much bigger than ours," he said.
Contrary to the survey which identified price as the biggest factor driving shoppers to speciality stores, Barnett said Raeward Fresh sold itself mostly on quality and service.
- © Fairfax NZ News
Sponsored links
Newest First
Oldest First
waste of time #32...do you drive a V8 ?
Foodstuffs chief executive Steve Anderson Quote Part of this could be attributed to more people setting up vegetable gardens at home or bargain hunting for lower-quality produce at other outlets. I would say his view is very biased.I find the quality at foodstuffs to be mixed and prices at foodstuffs/progressive compared to smaller fruit shops very high.Last week $6.99 kg for plums last week at new world compared to $3.69kg at fruit shop. The plumbs were same type etc prob same grower yet 6.99 versus 3.69. Someone is either paying to much or making to much.
@#14 - depends where in Wellington. The one on Cuba St mentioned is very good, and there are a couple along Riddiford Street in Newtown that usually have very good deals. Best to do both in one trip - they have different specials.
JG (#14) - you could consider getting lovely fresh seasonal organic produce from Simply Good Food (http://www.simplygoodfood.co.nz/). This is a community-supported agriculture scheme where you buy directly from farmers in the Wairarapa and they're delivered to the door or to a pick-up location on a Thursday (they have a number of pick-up points in central Wellignton). So much better than the flaccid, insipid, water-bloated fruit & vege from the supermarket. We've been getting our fruit & veges from them for a couple of years now to supplement what we grow ourselves.
I can walk to my local supermarket, but the markets are too far away and I would have to drive, so how exactly would this save me money?
I have been using the farmers market at Riccarton house in Christchurch for ages. the fruit and vegies are either spray free or organic - very high quality and still cheaper than the supermarkets. The meats/fish are really fresh, no fillers in the sausages!! I only use the supermarket for a few bits & pieces. I had a friend who worked at one of the big supermarkets, the mark-ups are HUGE!!
Chantel Organics in the Hawkes Bay leaves supermarkets looking abysmal. You order a fruit and veggie box (organic) and they deliver to your door. It's fantastic and I'd never buy from a supermarket again.
Your opinion poll didn't include specialist vege shops which is where we always buy ours, so I'm not sure the poll makes much sense.
Dear Commerce Commission,
Things simple need to change. If you only realised the true extent that this Supermarket Duopoly is ripping off New Zealanders.
I know for a fact that BOTH the big Supermarkets chains regulars add mark ups of 200% to 500% on Fruit and Vegetables. In fact I saw Broccoli for sale in a central city Supermarket in Auckland at $2.50 per head when I know they were buying it from the growers for only 25 cents per head. That’s a 1000% mark up.
This results in two things: First Growers struggle to make a living due to the fact they are paid such a small amount for their product and demand for there product decreasing due to prices being so high to the end consumer.
Second: New Zealand consumers are ripped off and the profits of this are either sent off shore (progressive) or remain in small number of private owners (foodstuffs)
When are you going to step in and change this?
NZ's best farm land 'already sold off'
'Mondayising' could cost $200m
ANZ, Westpac can bank on their brand
Action launched over Feltex statement
Riots as Greece approves austerity
Stocks down despite Greek news
Suppression ends for SCF accused
Fonterra recalls butter after metal found
Dollar up on Greek debt package
Driver charged over Allan Hubbard crash
Police find woman's body in Manawatu
Adele's the big winner at Grammys
Fonterra recalls butter after metal found
Proteas expect fiery series against Black Caps
Boxer Richard Tutaki enters guilty plea
Toxic soil fears five years before residents told
Pat Lam still mum on Piri Weepu's Blues role
Qantas grounding 'good for brand'
Seriously ill man found on beach
NZ's best farm land 'already sold off'
New Zealand lose Las Vegas final to Samoa
Adele's the big winner at Grammys
Police find woman's body in Manawatu
Two seriously injured in SH1 crash
Body found in Sydney tree identified
Woman crushed, friend watched 'helplessly'
Houston died in bathtub - coroner
Woman crushed, friend watched 'helplessly'
Superbike champion dies after race crash
Daily trivia quiz: February 13
Christchurch cricket bat murder admitted
Passive Phoenix pay too much respect to Roar
Hundreds of unfit teachers in class
Wendy #15 - let's NOT hope Tescos make it over here. They would rapidly turn into a monopoly and have complete control of the supply chain. Do you know that there are pretty much only one variety of strawberries grown commercially now because of the demands supermarkets have made on growers? This variety of strawberries has been chosen for their size and ability to last for a long time, not because they taste good!
I suggest you read George Monbiot on supermarkets: http://www.monbiot.com/archives/category/supermarkets/