There's growing evidence Kiwi supermarkets may not be drawing in as much profit as expected.

Woolworths New Zealand’s profits have dropped 52 percent in the last full year- down to $76 million from over $158 million.

First Retail managing director Chris Wilkinson says this is proof customers aren't being fleeced at the checkout.

"There is a limit to what consumers will pay. Retailers have to try and get that balance right, and this is a really good example of what's happening across the sector."

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