Any subsidies received by New World and Pak 'n Save stores will be repaid.

Foodstuffs says New World stores that have applied for the Government's wage subsidy will withdraw their applications.

The Government database of employers who have applied for the wage subsidy – which has now topped $6.6 billion in payouts for more than a million workers – shows a New World Metro with 71 employees was paid $482,124 and Waikanae New World was paid $140,592 for 20 employees.

Hanmer Four Square, Twizel Four Square, Four Square Taihape and Te Anau Four Square also received payouts.

Supermarkets are classed as essential services and allowed to continue operating during the level four lockdown period.

READ MORE:

* Coronavirus: Retail giants use government welfare to get through crisis

* Coronavirus: Supermarkets to put up screens, limit customer numbers

There was a surge in grocery purchases before the lockdown. Food and liquor spending on Monday, March 23, was two-and-a-half times the normal amount, at $111 million.

HAMISH BOHNY/STUFF Countdown said it would not apply for the wage subsidy.

"Foodstuffs would like to acknowledge the speed at which the Government moved to put funds in place and deal with changing needs to assist business during these challenging times," Foodstuffs spokeswoman Antoinette Laird said.

"Our owners and are committed to ensuring their team members are paid and supported during the Covid-19 crisis. Our owners also feel strongly that they need to act in the best interest of the wider New Zealand community and they understand the unique position and responsibility they find themselves in, one which allows them to continue to operate when others cannot. We have a privileged ability to trade and our offer will be customer driven, we will make sure we look after our teams, deliver fair prices, and focus on food being available to everyone as we go through this together.

"The Foodstuffs North Island and Foodstuffs South Island co-operatives have each taken the decision to communicate to their owners that at this time no New World or Pak 'n Save stores will apply for the Government wage subsidy - and the strength of each cooperative will be used to support individual stores that have been affected negatively."

She said that meant New World stores that had applied for the subsidy would remove their applications from the system.

Those who had already received a payment would pay the money back.

KATARINA WILLIAMS/STUFF Big queues seen at Countdown Newtown in Wellington.

"Stores will continue to liaise closely with the two co-operatives on this issue and if a store's individual financial position materially changes then this position can be revisited accordingly," she said.

"The situation is quite different for some of our Four Square stores, however, a small number of stores revenue is driven primarily by tourism and as such they are experiencing as much as a 70 per cent decline in revenue – something which is likely to continue for quite some time as New Zealand works through returning to normal post-Covid-19 and tourism numbers continue to remain low. It is our position that these stores may qualify for the Government subsidy and that they should apply so they can continue to support their teams financially, the alternative is that they make valued people redundant and this is something all of our owners are desperately trying to avoid as we play our role in New Zealand's economic recovery."

A spokeswoman for Countdown said it would not apply at this stage.

"Some of our stores have seen a significant downturn in custom following the level four lockdown but in response we have closed a couple of stores (Cable Car Lane in Wellington and Metro Albert St in Auckland) and transferred their teams, and we have also converted other stores to prioritise online shopping so that we're spreading the demand across our network."

Chris Wilkinson, of First Retail Group, said the boom times for supermarket might not last.

"While there have been spectacular trading days and weeks, the limitation on customer numbers and reduced stock levels in some ranges will likely mean sales may equalise then come back year-on-year - over that time. Also, with the volume of online shopping, there is likely to have been some impact within and from outside this group as New World shoppers secure delivery slots from other stores or competitor, Countdown. Some consumers may have travelled specifically to make less frequent, but larger shops at Pak 'n Save - which would have also cannibalised trade for smaller stores."

Infometrics chief forecaster Gareth Kiernan said it made sense that New World Metro stores would experience a drop-off due to fewer people being in the central business districts.

"The Waikanae New World doesn't make quite as much sense. The only logical explanation I can think of is that all the elderly people in Waikanae are staying at home and not even venturing out to the supermarket, and they don't know how to use online shopping."

Comments on this story are now closed