An article from RNZ, titled Supermarkets ‘know how far they can push people’: How to get a good deal on Christmas groceries
Overview
As Christmas approaches, some shoppers may fall for the promotions and discounts offered by supermarkets without realising if they are getting true value. According to Consumer NZ, simply buying the cheapest-labelled item may not save you money once you take into account unit pricing. Their spokesperson explains that multi-buy deals, variable pack sizes, and loyalty offers all complicate value comparisons, and shoppers may do better by checking cost per 100 grams or per item instead of gross price alone.
Insights
- Supermarkets are increasingly deploying multi-buy deals and member-price specials in the lead-up to Christmas to extract more money from shoppers.
- Unit pricing, cost per standard measure such as per 100 g or per egg, gives a clearer view of value than simply looking at the big price tag.
- In one example, Consumer NZ compared ingredients for a pavlova: going for the lowest overall prices could make one pavlova for $18.61. Selecting items by lowest unit price instead would cost more upfront, $37.37, but yield enough ingredients for three pavolovas, bringing the cost per pavlova down to about $12.50.
- About 64 per cent of New Zealanders said that unit pricing had helped them make better shopping choices.
Our Thoughts
This advice from Consumer NZ highlights an important tension in holiday-time supermarkets: what looks like a bargain is not always the best deal when you examine the underlying cost. The festive season tends to amplify promotional noise, seasonal treats, large-format packs, and loyalty offers, which can be confusing for shoppers, especially those under pressure to stretch their budgets. Using unit pricing can help cut through the noise and avoid being swayed by surface-level specials. For many households, particularly those with limited budgets, this simple practice could make a significant difference to their Christmas grocery spending.
At the same time, the pressure supermarkets exert with marketing, promotions, and pack size variation raises questions about fairness and transparency. If retailers know how to “push” shoppers, then it becomes even more important for consumers and regulators to ensure that pricing remains honest and easy to compare.
Our Questions for You
- When you do your Christmas grocery shopping, do you check unit pricing or tend to go by the big price tags or specials?
- Do you think supermarkets should be required to highlight per-unit pricing more clearly or even standardise pack sizes to help shoppers compare fairly?
- How could shoppers with tighter budgets use strategies like unit pricing or meal planning to get the most value during the holiday season?
The content in this blog is intended to provide general insights and should not be regarded as professional advice. Each business situation is unique, and we recommend consulting with a professional for specific guidance. At Black Arrow Business Studio, we specialise in accounting and consulting services designed to support your business’s growth and success. Feel free to contact us for expert advice and customised solutions.
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