In a video posted to social media, University of Otago PhD student Sayan Sharma claimed a security guard at New World Centre City told him to leave his backpack at the supermarket entrance while he went about his shopping.
The 25-year-old believed he was the only customer told to do this, having seen most other customers in the store carrying backpacks, he "felt there was racism involved here" and was "selected because I was brown", he said.
Mr Sharma told the Otago Daily Times his experience earlier this month was "very upsetting" and he posted the video to share his feelings — which received an outpouring of support from members of the public.
He had questioned if it could be a recently introduced store policy, but a staff member at the checkout told him it was not and management was informed.
After posting the video, New World reached out to apologise and offered him a $50 voucher, Mr Sharma said.
"They called me and they were really sorry, they were really apologetic.
"Later, I thought that this $50 voucher is really not my own money, so why not just give it back to the community?"
With the money from the voucher, and an additional $50 worth of donated food, he and a friend together distributed about five shopping bags worth of groceries to people in need on the street.
This was also filmed and posted to social media, and has racked up more than 25,000 views to date.
Mr Sharma said he never could have considered the money as his own.
"That's why I felt like I should give it to the poor people, the people in need and give it back to the community.
"I consider everyone as equal as human beings and I just gave it to the people in need, that's what I thought at that moment."
A Foodstuffs South Island spokesperson said the safety and wellbeing of its team and customers was a top priority for them.
Security guards were trained to use their discretion when engaging with customers who may be carrying bags, backpacks or other items.
Their expectation was that they always did this "in a fair, respectful and consistent way to ensure a positive and welcoming experience for everyone", the spokesperson said.
"We appreciate this customer’s feedback about the way this interaction made them feel.
"The security guard involved has been reminded of the importance of applying store guidelines consistently."
