Grocery Supply Code and Supplier Agreements - Foodstuffs South Island

From the 28th September 2023, FSSI is subject to the Grocery Supply Code.   At its most basic level this means that FSSI commits to dealing with all suppliers in good faith, with transparency and with reasonableness.  We will also comply with all requirements outlined in the Code.

To ensure we comply with the Code, FSSI has developed a Master Supply Agreement that will be used with all new suppliers from the 28th September 2023.  If you are a new supplier from that date, please e-mail us at supplier.agreements@foodstuffs-si.co.nz to ensure that the correct agreement is used.

Ranging and Shelf Allocation Principles

As part of the new Code, we are also publishing our Ranging and Shelf Allocation principles (below):

FSSI Product Ranging Principles

• Our ranging principles are guided by our focus on winning customer loyalty. We put the customer at the heart of our ranging decision which is captured in a category strategy. 
• The category strategy considers the needs-state of our customer when they shop, the roles and levers that may be applicable in the category and the potential for supplier products to play a part in that
• • We evaluate the following when deciding to range products:
  • Does the product meet the customer needs state?
  • Will the product drive customer loyalty? 
  • Does the product have a special story, any innovation or is the product substitutable? 
  • Does the product proposition meet the commercial requirements of the business? 
  • Can the product be supplied in a cost effective and efficient way throughout the South Island? 
  • Is the product sourced or created in a responsible and ethical way? 
  • Does the product proposition help deliver on our purpose and vision as a South Island co-operative? 
• Our product ranging principles are routinely used throughout our business. However, product ranging decisions can be impacted by various factors including sourcing, weather, crisis and market dynamics. 
• Ranging decisions are made by our Support Centre teams and Store teams. Both groups make decisions that are consistent with these principles as applicable to them. 

FSSI Shelf Allocation Principles

• We take a customer-centric approach to how we organise products across our supermarkets – this includes across departments, within aisles and on shelf. 
• Our customer data informs us on the best approach, and we also consider the retail expertise of our Owner-Operators, who have an intimate understanding of our customer behaviour. 
• Within these plans we position products together based on price and product attributes. We focus on presentation to ensure products are well presented and contribute to a great retail environment. 
• Various product attributes including supplier packaging dimension and format, regulatory requirements, overall store layout and supplier inbound supply service levels means we may deviate from our core principles from time to time.