Supermarkets are big business. Last year alone, we spent more than $15 billion at the check-out. But it’s not just grocery staples that are filling the trolley. Supermarkets are carefully laid out to part consumers with as much cash as possible.
Join today and get instant access to all test results and research.
Common practices include placing expensive products in prime positions and making purchases more appealing by using fancy displays and offering “special” deals.
University of Otago Professor of Public Health and Marketing Janet Hoek said supermarkets regularly employ “choice architecture” to influence consumer behaviour. For example, before you can get to the plain sliced bread you have to walk through the bakery section. The supermarket is hoping you’ll throw something extra in your basket.
“None of that is accidental, all of it is there to manipulate your behaviour,” she says.
Your supermarket visits likely follow a standard pattern. For the most part, you pick up your groceries in a certain order and rely on the same brands you’ve used for years.
To shake up your weekly shop, supermarkets use subtle prompts such as specials signs and multi-buy offers in the hope you’ll throw a few unplanned extras or pricey swaps in your trolley.
That’s why you’ll find the ends of the aisles filled with impulse buys. They’ll also stock displays of household essentials, snack foods and new products likely to grab your attention.
Aisle-ends are prime real estate for brands to have their products placed as it increases the chances shoppers will pick up an item as they pass by. Products that might require a longer decision-making process are often put towards the centre of the aisle.
Temptation also waits at the check-out. This is where you’ll find the “you’ve-been-so-good-and-disciplined-while-shopping-so-go-on-and-treat-yourself” products.
Sugary treats feature prominently, though some supermarkets are now putting healthier options, such as fruit and water, in the mix. Regardless, hold firm and try to ignore those smaller items begging for your attention on the way out.
Supermarkets are infamous for their special offers. These feature prominently in advertising. Bread for $1 and two-for-one deals seem too good an opportunity to miss, right?
When the deals are genuine, specials can offer savings. But they’re also designed to persuade us to make a purchase we may not otherwise have made.
Moreover, products can be on special so often the savings aren’t genuine. Our last supermarket survey found more than half the products in our basket of goods were regularly on promotion.
Stores tempting customers with the promise of a bargain must be offering a genuine deal. If they’re not, they risk misleading consumers and breaching the Fair Trading Act.
Supermarkets feature high on the Commerce Commission’s list of the most complained about traders. Last year, the commission received 98 fair trading complaints about Foodstuffs (owner of the New World and Pak’nSave brands) and 66 about Woolworths (Countdown’s owner). Pricing practices dominated complaints.
As well as the specials temptation, it’s common to find stands offering free mags and advice sheets. They’re often loaded with recipes and budget-friendly ways to feed a family, with advice from celebrity chefs occasionally added.
Recipes may come in handy when you’re stuck for dinner ideas. But the bonus for supermarkets is that they’ll encourage you to buy extra ingredients or specific brands to boost the stores’ bottom-line.
Online shopping has changed how supermarkets go about their business. Tick the products you want, enter your credit card details and either wait for your delivery to land, or grab it yourself.
Countdown offers pick-up and delivery shopping services across most of the country.
Some North Island New World supermarkets provide online shopping through the “I shop New World” app. The app simulates shopping by having you swipe pictures of items into your basket. Although visually appealing, you get less information about the product up front than on Countdown’s website, which has nutrition information and ingredient lists for some products. Just one South Island New World offers online shopping.
Countdown charges a $12 delivery fee for orders less than $200 and $8 for larger orders. Pick-up is free if your order is more than $50; you’ll pay $5 if it’s less. New World charges $15 for delivery if the order is under $200 and $10 for more expensive orders. Pick-up costs $5 regardless of order size.
A plus of online shopping is how easy it is to stick to a budget, and you have more time to weigh up any deals. However, a downside is that you can’t pick your own produce. You’ll have no guarantee you’re getting prime plums or sublime squash.
A major change in supermarket layout in the past decade has been how alcohol is displayed. The Sale and Supply of Alcohol Act, introduced in 2012, restricts how retailers display and market alcohol.
All the booze must be in one section. It can’t be on the main drag of the supermarket and beer chillers can’t greet you when you come through the sliding doors. Stores also can’t have signage directing you towards the alcohol section.
Fruit and vegetables are almost always at the entrance - they portray an image of freshness and healthiness. Having the produce at the front of the supermarket definitely isn’t for the convenience of the shoppers, as your softer fruit and vege are more likely to get squashed at the bottom of your trolley.
Cross-merchandising is where complementary products are placed together. How often have you decided to buy French Onion Soup and Reduced Cream after you’ve bought your chippies? Positioning these combinations together is likely to increase the sales of both.
Aisle ends are always full of special offers, impulse buys, or themed foods.
Perishable foods from the deli, bakery, seafood and butchery sections are usually found around the edges of the supermarket. Sights and smells grab your attention as you’re led past the displays to the packaged goods.
Where are the eggs? Separation of popular staples is a common element of supermarket design. You’ll spend more time wheeling past other temptations.
Staple products such as bread, milk and cheese are placed at the back of the store to make you do a full lap. It’s a decent bet your journey will take you past more exciting items with higher margins for the retailer.
In-store sampling is designed to tempt you to buy new products you normally wouldn’t.
Most check-outs have unhealthy snacks and sweets on display to tempt you and encourage your kids to pester you for treats. High-margin items such as batteries, chewing gum and magazines are also at the check-out. Subtle prodding from the supermarket to waiting customers can make a big difference to their turnover.
Unlock all of Consumer from just $7 for 7 days or become a member from just $12 p/m