While it’s not always easy to connect the dots between the work regulators do behind the scenes in Wellington and the average Kiwi’s day-to-day life, it feels a little more personal when it comes to our supermarket bills. And, with grocery food prices up 10.7% in the year to September – almost double the overall inflation rate of 5.6% - many of us will have second-guessed the contents of our trollies recently.

It’s not just inflation, though. The prices Kiwis pay at the supermarket have always been infamously high compared to our mates across the ditch and in even bigger markets further afield. Meanwhile, two highly profitable players dominate the supermarket scene in New Zealand.

Coincidence? Our competition watchdog, the Commerce Commission, doesn’t think so. In its 2022 market study into the grocery sector the Commerce Commission found that competition wasn’t working well for consumers. Now, 100 days into his role as our first Grocery Commission, Pierre van Heerden has revealed the ‘Top 3’ on his current fix-it list for the country’s $25 billion supermarket sector.

One of Mr van Heerden’s priorities is clear and accurate pricing, so that Kiwi consumers pay the correct amount at the checkout and are not misled. He says that, so far this year, supermarkets have been the most-complained-about sector to the Commerce Commission, with pricing issues being a common reason.

“Consumers are entitled to accurate and clear pricing, and to trust that what is advertised is what they pay,” Mr van Heerden said.

“The current level of pricing errors that Kiwi consumers are raising with the Commission is far too high and points to a real problem.”

Mr van Heerden noted that even if pricing errors only affected a very small proportion of total sales, the total overcharge paid by consumers could conceivably run to tens of millions of dollars every year.

“The errors that we are seeing through the complaints to the Commission likely only represent the tip of the iceberg.”

“Getting pricing right is the cornerstone of good business practice. It doesn’t need to be complicated, and we expect all businesses, including supermarkets, to have the processes in place to avoid mistakes.”

Mr van Heerden said the Commission is exploring various ways to improve the situation, including enforcement options under the Fair Trading Act, and looking at initiatives overseas that could work here.

Another priority at the top of the Grocery Commissioner’s fix-it list is to address undesirable behaviour from some suppliers that could hurt new and emerging retailers, consumer choice and prices consumers pay.

“Suppliers play a vital role in the grocery sector, and there are many trusted and iconic brands in New Zealand who have considerable influence. [They] have a responsibility to co-operate with the grocery regime and play fair in the system. Consumers expect this of them, as their brands are built on consumer trust,” Mr van Heerden said.