Despite Low Confidence In Government Efforts, People Want Urgent Action To Lower Grocery Bills

Scoop

23-04-2025

Press Release – Consumer NZ
Consumers NZ Grocery Survey, carried out in mid-April, reveals a strong public appetite for government action to improve access to affordable food. Many respondents called for clear and effective intervention by the government, while also expressing …
Consumer NZ calls for stronger regulation of supermarket pricing and promotional practices following its new survey on supermarkets.
Consumer's NZ Grocery Survey, carried out in mid-April, reveals a strong public appetite for government action to improve access to affordable food. Many respondents called for clear and effective intervention by the government, while also expressing low confidence in its ability to deliver.
'New Zealanders are struggling to access quality food at affordable prices, and they're not seeing meaningful change at the checkout,' says Consumer NZ chief executive Jon Duffy.
'We're pleased the government has kicked off a request for information process to explore how new entrants could help increase competition and deliver better grocery prices for New Zealanders. But the urgency is real.'
The survey also revealed the growing impact of rising prices on households. Thirty percent of people have needed help over the past year to get food – for example, from foodbanks, friends, family or Work and Income – based on the survey results.
The cost of living remains the highest concern for New Zealanders across all age groups and has for three years according to its Sentiment Tracker.
Low confidence in government action
The nationally representative survey shows most New Zealanders don't believe the government is doing enough to keep food affordable.
Two-thirds of people (66%) said they have low confidence in current government policies, while just 9% expressed high confidence in government action.
Distrust in supermarkets also rising
These results provide valuable insights into more recent trends in public trust in supermarkets and the government, as shown in Consumer NZ's Sentiment Tracker.
Source: Consumer Sentiment Tracker
Shoppers also report limited or declining trust in supermarkets to price and promote products fairly — an issue that raises additional concerns about consumer protection.
'There's increasing discomfort with how data is being used in loyalty schemes, and whether the deals offered actually benefit the consumer,' Duffy says.
Strong support for government regulation
When asked in the Grocery Survey what could be done to keep food accessible, hundreds of respondents said food is simply too expensive and urgent action is needed. Many supported stronger regulation and clearer rules to stop misleading promotions, not just more competition in the sector.
'Consumers want the government to take a harder line — not only in promoting competition, but also in actively regulating how prices are set and how promotions are run,' says Duffy.
Shoppers adapt to high costs
Consumers are increasingly turning to cost-saving strategies, such as shopping around and buying in bulk, to deal with rising food prices and growing pressure on household budgets.
More than half of respondents said they compare prices across supermarkets – most commonly through supermarket websites or apps, rather than in-store checks. This behaviour signals the need for unit pricing and easy price comparison across retailers.
Loyalty programme perceptions are mixed
Perceptions of supermarket loyalty programmes are divided. Nearly two in five consumers feel loyalty schemes offer little or no benefit, while around one in three see them as worthwhile.
'Consumers are rightly questioning the real value of loyalty programmes,' says Duffy.
'Our research found 84% of New Zealanders use loyalty cards, but the so-called 'specials' don't always reflect the lowest prices available at the checkout.'
While the Commerce Commission has not recommended a full review of loyalty programmes, it has called on supermarkets to ensure transparency in how data is collected and used, and to clearly disclose the terms of these schemes.
Time for action
'We are hearing loud and clear that shoppers feel unsupported and are losing trust – not just in supermarkets, but in the laws and systems that are meant to protect them,' Duffy says.
'To restore confidence, we need tougher regulation and greater enforcement to tackle pricing practices and market power in New Zealand's grocery sector.'
Consumer NZ continues to push for measures that ensure fairer pricing, improved transparency, and increased competition in the supermarket industry.
Note
Consumer NZ surveyed 1,005 New Zealanders aged 18 and over online, between 10 and 15 April 2025 for the NZ Grocery Survey. The sample was provided by Dynata and reflects national population profiles based on Stats NZ data.
The Consumer NZ Sentiment Tracker is a quarterly survey that explores the interests and concerns of New Zealanders. The nationally representative survey of 1,000 respondents is conducted every three months.