Countdown general manager of marketing, Bridget Lamont (pictured) says the figure is based on units sold of price lockdown products and multiplied by price reduction per unit.
The company has a ‘Price Down’ programme in place that has two parts: 'Price Lockdown' and ‘Price Drop.’
Price lockdown means items stay low in price for the long term, while price drop means savings on the items customers buy most often.
“We regularly track a theoretical trolley of the 100 items our customers purchase most often, and in the last year the price of these items has dropped at Countdown by 2 percent,” Lamont says.
She says Countdown’s low pricing programme has contributed to Statistics New Zealand’s Food Price Index’s findings.
Grocery prices decreased 2.3 percent in the year ending February 2015, the findings reported.
Price reductions are made on products it knows are popular with customers, such as bread, flour, paper towels and laundry powder.
One of its well-known price reductions was a loaf of Homebrand white bread selling for $1.
But Lamont is quick to point out the low pricing isn’t just items on sale – it’s a part of Countdown’s core brand strategy.
“Our price down programme is not a sales promotion. It is a fundamental re-engineering of price to deliver Kiwis lower grocery prices over the long-term,” she says.
Countdown, owned by Progressive Enterprises, has more than 18,000 staff members and 174 supermarkets nation wide.
Consumer NZ says Countdown's low pricing programme helped lift the company’s revenue to $5.7 billion in 2014.
Countdown was found to be the second cheapest supermarket in New Zealand in Consumer NZ’s 2014 supermarket price survey. Foodstuff’s Pak n Save was first.