Small supermarket changes, real savings

Kiwi households spend about $27 billion every year at the supermarkets, and the bill keeps getting bigger.  An urban Auckland household with two kids now spends about $445 a week on food and groceries, according to Inland Revenue. With food prices rising steadily, and forecasts that inflation might pick up further given pressure on fuel prices, it’s an area where many of us are likely to be looking for savings.

The Commerce Commission’s most recent annual grocery report noted that 55 percent of all consumers report being budget-constrained and another 33 percent are value-conscious. Only 12 percent don’t say price is a primary motivator when they’re shopping.

Because grocery shopping often happens in lots of small transactions, it’s an easy expense to overlook. But even saving $30 a week could free up more than $1000 a year, without changing what you end up eating. If you’d like to shop a little smarter, and put some breathing room back into your budget, there are a few things you could consider.

Shop the specials, then build the meal.

New Zealand supermarkets offer frequent specials, which can really add up. Consumer NZ research found some of the items it tracked in its price research were on special at least half the time they were being monitored. If you can focus on shopping specials, you may be able to get more for your money than if you stick to a favourite brand, or automatically buy the items that pop up at the top of your online shopping results.

Supermarkets all have their own loyalty programmes, too. It’s often worth signing up to make the most of points you collect while you shop, and any additional discounts available. If you earn points on a shop and pay for your shopping with a credit card that also earns points, it could get you to rewards more quickly.

It’s not what you buy, it’s when you buy it.

Small timing changes can make a difference to how much you spend on your groceries, even without you changing your purchasing decisions. It’s often the case that Monday and Thursday are good times to shop. Many supermarkets start their specials on a Monday, and they’ll replenish fresh produce specials and other staples on a Thursday, ahead of the weekend rush.

The markdown windows you might not know about.

Pak’nSave typically marks down fresh items in the morning between 7am and 9am and around 6pm to 7pm. New World often reduces bakery items after 4pm. You may also be able to pick up a bargain by shopping closer to closing time, particularly in the produce department. If you keep an eye out, you’ll be able to get a sense of what your local shop’s patterns are, and how you might be able to make the most of it.

Shopping around may help you get what you need.

You may be able to save money by shopping around, because supermarkets often offer different items on special at certain times. Some people like to use Pak’nSave or Costco, for example, to stock up on bulk items and basic pantry-fillers, and then add other items from New World or Woolworths, or even speciality retailers, as appropriate. Apps like Grocer, Grosaver and Price Pulse can help you see what’s on special where. The Commerce Commission has also noted in the past that in areas where shoppers have access to Asian supermarket operators, they may offer appealing prices.

Work with what you have.

If you can use what you have in your pantry, it may give you more meal options for your family without having to spend any extra. There are AI tools available that make this easy, and Pak’nSave’s Savey mealbot app helps build recipes from what you already have in your fridge or what’s on special. In general, meal planning and having a clear list of what you want to buy before you head to the supermarket or start your online shopping can help you make the most of your shopping trip.

Freeze it now, thank yourself later

Your freezer may be your friend when it comes to trimming grocery costs. Often, supermarkets will sell items that are near their best-before date a bit cheaper. Take advantage of the bargain, pop them straight into the freezer, and defrost when you’re ready to use them. Waste minimisation campaigners Love Food Hate Waste say even things that are past their use by date are fine to use, provided they were frozen beforehand.

Like to talk? 

If you’re looking for more ways to create financial breathing room, it’s worth starting a conversation. We’re here to help.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.