How shopping around can lop 16pc off the bill

Sophie Gray of Destitute Gourmet says one way to save money is to 'get over your embarrassment, and buy house brands'. Photo / Dean Purcell

As the spending crunch hits New Zealand households, even those who've never had to budget before are searching for savings.

Budgeting services report ever-larger numbers of families seeking their help and it is no longer only people on low incomes and benefits feeling the pinch.

But how worthwhile is it to shop around, and how much can be saved by going further afield? The Herald hit the supermarkets to find out.

We bought a list of staple foods including vegetables, dairy, meat and cereal and found shoppers could save 16 per cent on their weekly food bill.

The shopping list was broadly designed to provide breakfast, lunch and dinner to a mid-size family for two or three days.

While some brands weren't available in all the supermarkets, the survey showed a 16 per cent difference between the lowest and highest prices.

At New World Meadowbank the list came to $85.39, while down the road at Pak'nSave Glen Innes, the same list cost $73.32. At Foodtown in central Auckland the list cost $78.55 and at a corner Four Square it was $76.93, but a few items were unavailable.

Raewyn Fox, chief executive of the Federation of Family Budgeting Services, said people had to weigh up several factors when deciding where to shop, including petrol costs.

"If you have to go a long way to get a cheaper deal, you're spending more on petrol and it probably doesn't work out that much cheaper," said Ms Fox.

"What we're noticing is that it's the basics that fill kids up, like bread, milk, cheese and eggs, that people are struggling with.

"When the basics go up it has a far greater impact than when the things that aren't quite so essential go up.

"When housing costs, petrol and power bills go up you adjust your food budget to allow for it but when the food goes up as well you're a bit stuck."

Ms Fox said budgeting services were seeing more middle-income people and two-income families.

"Our advice is as far as possible to shop around, find things that are cheaper and offer better nutrition like Saturday morning fruit and veggie markets. Is there a local food co-op with bulk buying power? We're telling people to tap into their community and find out what's on offer."