Supermarket chains count earthquake damage cost

A Christchurch bottle store wrecked by Saturday's earthquake. Photo / NZPA

Supermarket chains are counting millions of dollars in damaged stock as they ship in groceries to cover shortages and access lost to distribution centres.

Bosses at both Foodstuffs and Progressive Enterprises were yesterday awaiting clearance for the distribution centres - quake damage having forced forced them to go direct to stores.

Foodstuffs South Island chief executive Steve Anderson said the quake had cost "millions of dollars" including damaged stock. Foodstuffs - whose co-operative covers the New World and Pak 'n' Save chains was delivering direct from its distribution centre in Dunedin.

He did not expect shortages but initially choice was restricted. Foodstuffs was concentrating on staples, he said.

Progressive Enterprises - which runs the Countdown chain - is bringing more goods from its Palmerston North Distribution using extra capacity on the Interislander ferries.

Spokeswoman Penny Newbigin said it was too early to estimate the value of damaged stock or the cost of the quake.The New Zealand Retailers Association said its members were coming to terms with the scale of the event.

It was significant that modern high rise buildings in the city centre were out of action and not just older buildings.

Issues included obligations to staff including health and safety and remuneration. Spokesman Barry Hellberg said retailers were mostly lease-holders rather than landlords, and some would be would be looking for compensation for the time buildings were out of action.

It was impossible to know how many retailers had protection for revenue lost as a result of the earthquake, said Hellberg. This cover tended to be expensive and it did not necessarily provide coverage from the first day when revenue was affected.

The Association was waiting until today to talk to retail chains with headquarters in the South Island, included Postie Plus, Katmandhu and Smith's City.

Poultry Industry Association executive director Michael Brook said that some poultry farms had required support with generators. But - perhaps surprisingly - he said there was no additional breakage from the quake.