A few thoughts or observations on this.
- if a product is affected by something that impacts supply then price generally will go up. So, if a product like Kumara is hit with flooding which wipes out a big chunk of the crop, unfortunately the price going up is the result. It eases demand for that product (and shifts some of that demand to other products) so that it is more often available on the shelf for consumers instead of continually being out of stock.
- meat has risen significantly in recent times and sausages are made of meat so not a surprise they have gone up in price also. Add in wage increases, fuel increases etc
- shopping at specialty stores is a good thing isn't it? Generally I find fresher, better quality fruit and veges at my local fruitworld at a similar or cheaper price. Competition is good. People complain about the duopoly of the supermarkets yet complain about there being other cheaper options too? You want cheap, quality and convenience? Are we too spoilt and in the habit of shopping at supermarkets now that we want it all? I actually think this could be the resurgence of smaller, specialty, community retailers which would be a good thing
- most price rises over the last 12 - 18 months have been warranted due to increased costs. However some have been affected by short term issues like the CO2 shortage earlier this year and not been bought back down again as far as they initially were
- if prices of goods have gone up then it's obvious that clearance prices will be higher too, in proportion with the rises
- I think the commerce commission review has caused the opposite affect of what it was intended for in regards to pricing. Supermarkets have in some instances lifted everyday shelf prices higher so that specials reflect a good percentage saving so as not to 'mislead' customers. This means they will be paying more when it's not on promotion but the same as they would normally have when it is on promotion. Also the rules around communicating specials in stores have changed, often actually making it more difficult to promote them. The extra work involved in securing a one off deal often doesn't make it worthwhile to do. Also, Foodstuffs switching to a more controlled, centralized model will limit some individual stores being able to offer their customers some promotions unique to them, costing consumers. The 'rules' being implemented, IMO, may be fine for ambient grocery lines like weetbix or biscuits, but aren't suitable for more commodity type categories like fruit & vege, and meat where costs can be variable from week to week.
- different retailers have different costs of doing business and different margin expectations. Countdown for example have polished floors, better lighting, more range etc. Their pricing generally aligns with New World, and Pak n Save is targeted to be 10% -15% cheaper. I know of a number of suppliers products where New World and Pak n Save have lifted their pricing and banking the extra margin despite having a cost and retail price that meets their margin expectations, because Countdown are selling at a slightly higher price. So, for example if New World had a product they were retailing at $5.00 and promoting at $4.00 (with Pak n Save under that by the 10% - 15% target) but Countdown was retailing at $5.50 and promoting to $4.50 then New World have lifted to match and Pak n Save also relative to it. Instead of having competition in the market forcing countdown to drop it's price. This is where a third and fourth player is required to keep the duopoly honest.
So in summary, a lot of the price rises you see are warranted but their are also others that aren't and f0r a number of factors. IMO we should still have cheaper grocery items in a number of instances than we have currently despite the real increases in costs.