Countdown's announcement it will freeze the price of over 500 items this winter has been gratefully received by some, but heavily criticised by others.
From Monday, customers will find the price on staples such as tinned tomatoes, butter, cheese, sugar, flour won't go up despite what happens with inflation over the winter months.
READ MORE: Countdown to freeze price of over 500 essentials for winter
The move comes amid a cost of living crisis and with inflation at 6.9%, its highest rate since 1990.
Consumer NZ chief executive Jon Duffy said the freeze suggested Countdown's profits were too high. (Source: 1News)
Countdown's managing director Spencer Sonn said it was freezing prices despite having nearly 1000 requests in the last 10 months from its suppliers to increase costs due to the higher fuel, raw material and freight costs they are facing.
However, few of the 500 items were fresh fruit and vegetables, and many of the items were Countdown's own homebrand products.
Consumer NZ chief executive Jon Duffy had mixed feelings about the price freeze.
"If consumers are spending less at the checkout for products over the next three months while this price freeze is in place then that is good news because consumers have been doing it tough with the price increases they’ve been enduring," Duffy said.
But Duffy said that the price freeze was "essentially an admission" from Countdown that they had played a role in the cost of living crisis.
"Food prices have got to a point where they have to take this drastic action as a business to reduce their own profits. That suggests to me that profits are too high and we have a Commerce Commission market study that confirmed supermarkets are making more than $1 million a day in excess profits."
From Monday, the price on items such as butter, cheese and some veggies will remain the same through winter. (Source: Breakfast)
He also questioned Sonn's explanation that prices had risen solely because of higher fuel prices, freight and raw material costs.
"All those factors they’ve raised, transport costs, inflation, those are absolutely all factors," Duffy said.
"But equally among those factors are the levels of profits the supermarkets are extracting from New Zealanders. So you can’t point your finger at one set of reasons and ignore the most inconvenient reason."
READ MORE: David Clark takes aim at supermarkets as food prices rise
Among the 500 products were 20 alcohol products, seven salmon products, three different pestos and even olives. The only vegetables receiving price freezes were onions, carrots and pumpkin.
"If Countdown is truly interested in helping low-income New Zealanders with the staples that they need to put on the table to keep their family fed, salmon and olives are not usually on the shopping list for people in those situations," Duffy said.
In Auckland, some shoppers told 1News the price freeze was "great news".
"There’s a lot of whānau out there who can’t afford the cost of living today, so if Countdown are going to do that I really support it," one woman said.
She said in recent months she had been forced to avoid buying cheese and vegetables as prices "skyrocketed".
READ MORE: Shopper finds ordering groceries from Aus cheaper than NZ supermarket
"Lettuce is just horrendous...There's a lot of items at the supermarket that are just way too expensive to even think about buying."
However, not all were supportive, others saying the prices shouldn’t just freeze, but drop.
"It’s too dear, they should drop the price," one man said.
"That’s why I don’t shop at Countdown, I shop at Pak’nSave."
Countdown told 1News most fruit and vegetables, meat and dairy products were subject to seasonal conditions and volatile market prices and therefore were too difficult to freeze their prices.
"If we can add more fruit and veges over the next few months, we will," a Countdown spokesperson said.
SHARE ME