US EditionNicola Willis to announce plans to encourage third supermarket competitor
- Finance Minister Nicola Willis will announce the Government's next steps this weekend to increase competition in the grocery sector, striving to attract an international player to challenge New Zealand's supermarket duopoly.
- This action follows the Commerce Commission's September 2024 report which showed that efforts to boost grocery competition had limited impact, as major retailers retained market share and increased price-cost margins on non-fresh products by an average of 3.1% between 2019 and 2023.
- Willis, also the Economic Growth Minister, has indicated interest from both international and local investors in entering the NZ grocery market, and aims to help them succeed by incentivizing a third player, potentially through removing unnecessary regulations from the Overseas Investment Act and other levers like tax incentives or infrastructure assistance.
- Willis, citing commercial sensitivities, has not disclosed who expressed interest, but in February told RNZ that splitting up the duopoly or requiring them to give up unused land to new competitors would be a quicker fix, stating, "The alternative is to not do anything and to let the current arrangement become more and more entrenched."
- While Sue Chetwin from the Grocery Action Group views a government announcement positively, Consumer NZ believes rolling away red tape is not enough and a stronger response is needed, given that New Zealand's situation is worse than Australia's, but RNZ understands that no announcement or confirmation of a third player will be made this weekend as the work is still ongoing.
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Leaning Left1Leaning Right0Center2Last UpdatedBias Distribution67% Center
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