Loyalty Schemes Inflate Prices
Consumer NZ criticizes Countdown and New World's loyalty schemes for high prices, finding 75% of a 48-item sample cheaper elsewhere.
October 9, 2023
Loyalty Schemes Under Scrutiny
The loyalty programs offered by New Zealand's prominent supermarket chains, Countdown Supermarkets and New World, are facing criticism from Consumer NZ. An investigation revealed a significant issue with pricing strategies tied to these loyalty schemes.
Consumer NZ's study, which included a sample of 48 grocery items, found that 75% of these items were cheaper at other retailers. It is important to note that an average grocery store usually stocks around 50,000 different items. This discrepancy raises concerns about the supposed benefits of loyalty schemes which, according to the watchdog, might be leading to inflated prices rather than real savings for consumers.
