Big discounts boost supermarket war

Results from Consumer NZ's latest supermarket survey show price wars between New Zealand's largest chains are heating up.

While Pak'n Save remained the country's cheapest supermarket chain in the 2013 results, good deals and cheap specials at Countdown propelled the chain into a close second place, ousting New World to third.

The survey rated prices of the 40 top-selling items at supermarkets in north and southeast Auckland, Tauranga, Napier/Hastings, Wellington, Christchurch and Dunedin.

Consumer NZ chief executive Sue Chetwin said the secret to Countdown's rise to second place was its numerous discounts and multi-buys.

"Some of the discounts were huge - you could save $2.49 on a pack of instant coffee."

Getting good deals at Countdown was about sticking to specials, she said.

Tea bags purchased on special from Countdown as part of the survey were discounted by $1.10.

Shoppers after the same brand of tea bags at Pak'n Save or New World had to pay at least $1.10 more.

Despite this, Countdown was rated the most expensive for online shopping in Wellington, with items costing $160 including a $13.25 delivery fee.

When online shoppers picked up groceries, they saved $8, the survey found - dropping the online Countdown bill below its New World Wellington city rival.

Dunedin Pak'n Save was awarded New Zealand's supermarket minnow title, coming out with the lowest grocery bill in the survey ($126).

The chain was also the cheapest for basic items such as sugar, milk, flour and butter, with the lowest prices for seven out of the 10 basic items surveyed.

Chaffers New World in Wellington was the most expensive supermarket surveyed, with a bill of $157.

The 40 items included food and non-alcoholic drinks, personal care and cleaning items.

Alcohol, fresh meat, fish or produce were not included in the survey.

Meanwhile, savvy Northland shoppers wanting to cut down on grocery bills are being advised to select stores with the best coupon and multi-buy deals, a price survey says.

Whangarei's Salvation Army is warning residents to be careful around bulk-buying too, advising shoppers to plan any big purchases ahead of time.