Shoppers switch to cheap lines

New Zealanders are radically changing their grocery shopping habits as they tighten their belts.

Foodstuffs South Island chief executive Steve Anderson said the co-operative chain, which has Pak'n Save, New World and Four Square, had seen a huge change in shopping behaviour.

"It's like someone flicked a switch three months ago and as a result people are changing the way they shop," he said.

"The trend is towards Pak'n Saves for the cheaper prices," Anderson said.

Rising fuel prices had also proved a blessing for smaller grocery stores in rural areas.

Anderson said the trend was towards shopping in rural Four Squares and New Worlds, rather than coming into the city.

"People have been calculating how much it costs to drive and as a result they're shopping locally," he said. "Prior to the fuel increases no-one seemed to think about it and now they do it's cost-effective to shop there rather than spend $25 to drive to supermarkets."

Anderson said the popularity of products had also changed, with house brands increasingly in demand.

"Budget and Pam's are doing very well, which is an indication of tighter times."

Another noticeable change was the shift towards 500g blocks of cheese rather than the traditional 1kg block as prices rose.

"People went from a situation where they were happy to live this lifestyle because of the value of property and their job is safe and then they started thinking these pillars are not there so they've gone from spenders to conservers."

Angus McNaughten, of the Kiwi Income Property Trust which owns malls including Northlands, said there had been a shift to the cheaper supermarkets.

"It would be fair to say ... people are becoming a lot more cost-conscious," he said.

"It's a sign of the times."

Progressive Enterprises spokeswoman Fiona Breen said Progressive's supermarkets, which include Woolworths and Countdown, had experienced strong growth in their in-house label, Homebrand. She said there had also been a change in where people shopped.

Petrol prices had changed people's habits and many preferred not to drive as far to shop, she said.

"Convenience in location is becoming a big factor," she said.

However, they had not seen a noticeable shift from Woolworths to Countdown, perhaps because the prices at the stores were now similar.

Shopper Irena Sutherland said she had recently changed to Pak'n Save Moorhouse in Christchurch because of the competitive prices.

"I used to shop at New World in Opawa but I found it cheaper here, I have to confess," she said yesterday. "I also buy the house brands, why not? They serve the same purpose."

Sharon Lister said that although she had closer supermarkets, she travelled to Moorhouse Avenue because it was the cheapest option.

However, Lister also went to other supermarkets for specific items when they had good deals.

"I shop around, especially with the cheap brands," she said.

"If they've got something on special I will go down and grab it."

Glen Steele, of Hanmer Four Square, said more residents of the North Canterbury town were shopping locally but business was suffering from a drop in tourist numbers.

 

- © Fairfax NZ News