FY24 was another successful year for our co-op as we worked hard to compete and earn New Zealanders’ loyalty, seeing a 9.6% rise in retail and wholesale revenue.

It was also a year when many times we chose to do what was right, rather than what was easy – a credit to our Owner Operators, leaders and teams, across our stores, Supply Chain and Support Centre, who stood together and delivered strongly on our purpose of making sure New Zealanders get more out of life.

Every year, what New Zealanders need from us changes, and FY24 was no exception. With inflation hitting New Zealand communities hard, we zeroed in on value and made a difference – keeping our food price rises below the official rate of food price inflation for 10 of the 12 months, in the same categories Stats NZ uses to measure inflation. 

We also continued to invest in our Social Supermarkets, making sure we weren’t just supporting New Zealanders through our stores, but also providing a dignified option for those battling food insecurity. In FY24 we opened five new Social Supermarkets, in Porirua, Paeroa, Napier, Palmerston North and West Auckland. We’ve now supported more than 27,000 people – to me this is one of the great examples of how we are, and should be, a positive force for New Zealanders.

At the same time, we worked hard to do everything we can to keep our people and customers safe in our stores. Store safety remains a top priority for us, so it was troubling to see retail crime rise more than 50% in our stores in the first quarter of 2024, compared to the previous quarter, including twice the number of assaults and harassment. Sadly, retail crime isn’t a new problem for grocers, but the upward trend in recent years is undeniable, and growth of violence is deeply worrying.

That’s why in February we launched a trial of facial recognition technology (FRT) in 25 of our New World and PAK’nSAVE supermarkets. If technology can be used to stop repeat offenders coming back to our stores, then we felt it must be explored and trialed.

Early feedback is that team members in trial stores are telling Members and store leaders that they are feeling safer at work. It seems from customer surveys that it has their support too. We’re working closely with an independent evaluator to ensure we respect the privacy of our customers, and I look forward to seeing if the technology has helped keep our people and customers safe in those trial stores.

Another key highlight was finishing the year with all three retail brands in market share growth – a huge achievement, a first in the history of our co-op, and testament to our commitment to value for New Zealanders.

FY24 was also the year our industry became one of the most regulated grocery markets in the developed world. This has brought considerable and complex change, but we’ve leaned into it and are fully committed to playing our part – and we’ll continue to prioritise this heading into FY25, as the changes continue to unfold.

And it was the year we proposed a merger with Foodstuffs South Island. It’s the right time for this next step because both our co-ops play a significant role in the lives of New Zealanders, and together nationally we can deliver more value, more innovation and better experiences. Together we can be the best grocery co-op in the world and a positive force for New Zealanders for the next 100 years.

We believe New Zealanders deserve a strong and proudly New Zealand owned grocery co-op. We’re fully committed and excited about delivering the benefits we see for all stakeholders – customers, our Members and team, suppliers and New Zealand as a whole.

As we head into FY25, I’m very clear on our core focuses:

1. Investing in our people, talent and culture, because they’re what make our co-op a success, including building on our record safety performance in FY24 and investing further in store safety to reduce retail crime, while constantly looking for new ways to evolve our culture too.
2. Winning customers every day, by maintaining our laser focus on pricing so we can deliver for all customers and keep inflation low, providing customers with compelling price positions across our brands, and using the tools we’ve got to keep trading in a way that customers value.
3. Delivering the merger benefits, assuming we get regulatory approval: upholding our commitment that it must deliver for all stakeholders – customers, Members, teams, suppliers and communities – and ensure a smooth transition so we can provide the best experience and value to New Zealanders.

It’s been a privilege and pleasure to serve an eighth year as Chief Executive of Foodstuffs North Island and there is much to be excited about for the future ahead of us.

So, thank you to everyone who is part of this: to our Owner Operators and teams on the shop floor, to our distribution centres and depot teams and drivers, and to all the teams in our Support Centre.

Chris Quin

CEO

CASE STUDY: CEO HIGHLIGHT

With Steven Johnson, GM Social Services for Te Rūnanga o Toa Rangatira

In February 2024, we opened our tenth Social Supermarket – which is double what we had at the end of FY23.   Located in Porirua, Te Umu ki Rangituhi is a partnership with Te Rūnanga o Toa Rangatira (TROTR), who’ve been providing food parcels to local whānau for many years.  Using our Social Supermarket system, users of TROTR’s social services can now access groceries at low or no cost, using a points system that lets them shop to suit the preferences of their whānau. We provide the store expertise, training, and commitments from buddy stores and suppliers to help keep stock on the shelves, while TROTR takes care of its community’s day-to-day needs.   It’s now three years since the first Social Supermarket opened in Wellington, and it’s great to see this very special network steadily growing and supporting so many people.  CQ