Cost of living: The Warehouse expands fresh produce trial to five new locations

Chief executive Nick Grayston says The Warehouse will continue to push to make groceries more affordable for Kiwi families. Photo / Gino Demeer, Cactus Photography

The Warehouse will expand its fresh fruit and vegetable trial to five new locations around the country from today.

Manukau, Te Rapa, Fraser Cove, Eastgate and Dunedin South stores will be part of the Warehouse’s fresh produce trial, which started in February and aims to introduce more competition to the grocery retail sector.

Warehouse Group chief executive Nick Grayston said: “The supermarket duopoly is very comfortable with the status quo. We’re not, and we’ll continue to push to make groceries more affordable for Kiwi families.”

“Grocery is an area we are working hard in, but the lack of access to wholesale supply at equitable cost prices remains our biggest barrier to doing more,” Grayston said.

The Warehouse Whangārei, Westgate, Lyall Bay, Riccarton, Timaru, and Invercargill have been piloting the trial so far.

Grayston said the trial received “very strong response from customers”.

“We know every dollar counts so expanding our fresh fruit and vegetable offering into more stores is another important step for us.”

He said the range is reviewed weekly based on seasonal availability.

The current fresh produce on offer at the Warehouse includes carrots, onions, potatoes, apples, bananas, lemons, golden kiwifruit, mandarins, avocadoes, and garlic.

Earlier this year, the company announced it would expand the trial’s range and reach if it was successful with Kiwi shoppers.

This comes after food prices appeared to peak in last month’s food price index released by Stats NZ.

Food prices increased 12.1 per cent in the year to May 2023, however economists suggested lower inflation on food is still a long way away.

Stats NZ said food prices in May were up 0.3 per cent on April 2023 “due to rises across all the broad food categories”, showing some signs that food price inflation has peaked - with the smallest food price increase since last April’s 0.1 per cent rise.

However, ASB senior economist Mark Smith said: “It is our hope that annual food price inflation has peaked... but sub 3 per cent annual food price inflation looks a long way away.”

Smith said the 0.3 per cent rise “was slightly lower than expected, but still left annual food price inflation above 12 per cent and close to 30-year highs”.

Stats NZ consumer prices manager James Mitchell said grocery foods drove a majority of the yearly price increase: “Increasing prices for fresh eggs, potato chips, and lollies were the largest drivers within grocery food.”