KEY POINTS:
It might be where "everyone gets a bargain" - but when it comes to cheap groceries, The Warehouse is lagging well behind many of its competitors.
A Consumers' Institute supermarket survey has just been released, and Pak'n Save is once again the cheapest chain for a trolley load of goods in the five main centres - Auckland, Hamilton, Wellington, Christchurch and Dunedin.
The newcomer in the grocery market, The Warehouse Extra, was found to be one of the most expensive.
The Warehouse Extra, which first opened at the Sylvia Park shopping complex in east Auckland last June, was only just beaten to last place in the price war by Woolworths.
On opening the new grocery offering, The Warehouse Group press release said it would continue the "great products and bargains" that customers loved about shopping at The Warehouse
But with the sample trolley load costing $15 more at The Warehouse Extra ($140) than Pak'n Save ($125), the new player in the supermarket scene doesn't appear to be living up to the bargain part of its claim.
Undercover shoppers for the report bought 40 top-selling items on the same day. Their shopping list included staples such as bread and milk, and luxury goods like wine and confectionery. The cheapest house brand of staple products such as sugar and butter were obtained from each store.
Fresh meat, fish and produce were not included as quality would need to be compared.
Products such as cat food, frozen peas and butter were all at least 50 cents more at The Warehouse Extra than Pak'n Save.
A spokesperson for The Warehouse Group yesterday refused to comment.
Mark Baker, general manager of retail sales and performance at Foodstuffs, which operates Pak'n Save, said the chain was "founded on providing the lowest everyday food prices to New Zealanders".
Baker said it achieved this by not running extensive television or press advertising campaigns, and keeping operating costs as low as possible.
While the likes of Pak'n Save and Countdown may be cheap, the report warned the discounted prices on groceries meant shoppers were given less choice in terms of product range.
"Pak'n Save provides the full range of products for customers to do their full shop, although it is true that the selection is not as great as other supermarkets," said Baker.
"This means we can focus on bulk purchasing and keeping our inventory costs as low as possible."
Baker described the supermarket industry as "intensely competitive".
Countdown provided strong competition for Pak'n Save, with a large number of specials on the day the survey was conducted.
The survey found that savings at the chain ranged from $10-$16 across the country.
Woolworths was the most expensive supermarket in all five centres, although it was joined by Foodtown in that position in Hamilton.
The Consumers' Institute also compared fuel discounts offered by supermarkets, and found little variation. All but two of the stores offered four cents off per litre; Kilbirnie Woolworths in Wellington offered a six cent discount, and Warehouse Extra did not give fuel vouchers.
