A roast would have cost 2.4 percent less in 2024 than in 2023 because although meat cost more, roast vegetables were more affordable this Christmas. Photo: 123rf
New research from Consumer is challenging the idea that supermarkets put their prices up in the week before Christmas.
Consumer NZ spokesperson Kate Harvey said the organisation wanted to find the truth behind the rumour that things get pricier for festive shoppers.
"We started with this hypothesis that things get more expensive in that week - but we found the opposite, that things got cheaper."
Through December it tracked 10 supermarket products that might have featured on Christmas shopping lists, including custard, mustard and chocolates like Roses and Lindor. Prices were compared across New World, Woolworths and Pak'nSave.
Harvey said there were clear trends. Christmas week had the highest number of special offers, with 23 discounts across 10 products. The week before that was second, with 22 specials.
But by the end of January only three items were on sale, and specials continued to drop away through January.
Consumer found that some products, such as Cadbury Roses chocolates and Nestlé Milk Chocolate Scorched Almonds, were consistently discounted throughout December but reverted to their normal prices once Christmas had passed.
Anchor custard was $4 in the week that included Christmas Day at New World and Woolworths, but increased to $5.59 and $5.50 respectively the week after. At Pak'nSave, the same custard increased from $3.79 to $4.39.
Roses were $9.99 at New World on Christmas week and $17.99 the week after. At Pak'nSave they went from $8.99 to $17.49.
Lindt Lindor assorted chocolates increased from $6.50 in Christmas week at Woolworths to $11.49 the following week.
At Woolworths, a 1.5 litre bottle of Coke got cheaper the week after Christmas, falling from $4.79 to $2.80.
The survey did not include fresh items. It is often the case that the demand for strawberries combined with limited supply before Christmas can push up the price. Harvey said they did not look at fresh food because there were more factors that could affect the price.
Pulling in customers
Bodo Lang, a marketing expert at Massey University, said it was likely that supermarkets were using discounts to pull in big-spending Christmas shoppers.
He said the specials would be anchor products that drew people to the supermarket, in the hope they would then do the rest of their Christmas shopping there.
Brad Olsen Photo: RNZ / Samuel Rillstone
"Products that are on sale will motivate consumers to visit a supermarket and, while in the supermarket, consumers are almost guaranteed to buy more products than the one they had seen on special. These products are a catalyst to buying products with a greater profit margin," he told Consumer.
He said supermarkets used the data they collected on shoppers to understand demand for different products. They would then work with manufacturers to create deals that would attract shoppers. He said manufacturers would lower their profit margin to help, and supermarkets could also lower theirs, although they would not make a loss.
Harvey said Consumer would still overall be sceptical about specials.
"Specials aren't always as great as they seem, especially when things are always on special."
Before Christmas, chief executive of Infometrics Brad Olsen estimated that a barbecue Christmas meal would cost 2.3 percent more in 2024 than 2023 because of the increase in the cost of steak. A roast would have cost 2.4 percent less than in 2023 because although meat cost more, roast vegetables were more affordable this Christmas.
The cost of making a pavlova had fallen 14 percent between 2023 and 2024, he said. That was mostly because of the price of strawberries and kiwifruit falling, and eggs and sugar also becoming cheaper.
A potato salad was also cheaper, but a Christmas cake was 14 percent more expensive because of higher butter and dried fruit prices.
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