New Zealand

The Warehouse's grocery popularity sees its breakfast items priced cheaper than supermarkets

The big red shed is taking on the supermarkets.

As the high inflation puts pressure on Kiwis, a retailer is putting pressure on supermarkets to have more afforable grocery prices.

The Warehouse, who attracted a lot of attention from its $4 butter and $5 Weetbix prices earlier this month, has now started focusing on cheaper breakfast items, with bread prices at 2 for $5, and 2L milk sitting at $3.

The retail giant claim that by purchasing grocery staples like bread, milk and butter from them, a Kiwi would save $5.80 compared to the standard supermarket, and a futher $5.30 by adding Weetbix and coffee to the shopping list.

"We've seen huge demand for the $4 butter and $3 milk we made available earlier this month and we're pleased to be able to add this fantastic bread offer," said The Warehouse Group CEO Nick Grayston.

"We've had great feedback from new customers who haven't visited our pantry aisles before and are discovering that in addition to butter, milk and bread, we also range things like breakfast cereals, pasta, rice, canned items, nuts and snacks – everything families need to get them through the week."

"We are taking steps to offer the best prices we can on items we see as essentials. Not just on butter, milk and bread but the things our customers value most."

Earlier this month, CEO Nick Grayston told Stuff.co.nz that The Warehouse was "seriously considering" entering the grocery market.

A recent report from the Commerce Commission revealed the competition in the grocery sector is "not working well for New Zealand consumers".

Commission Chair Anna Rawlings said they have found the intensity of competition between the major grocery retailers who dominate the market, Woolworths NZ and Foodstuffs, is muted and other competitors wanting to enter or expand faced significant challenges, as reported by Today FM.