US EditionGovt to consider break-up of supermarket duopoly, wants another big competitor in NZ
- Economic Growth Minister Nicola Willis announced that the Cabinet has agreed to a formal request for information to accelerate improved competition in the New Zealand retail grocery market.
- The move comes amid concerns that New Zealand supermarkets have high prices and that the current duopoly of Foodstuffs and Woolworths limits competition, resulting in high profits and limited product ranges.
- The RFI seeks information on what it would take to get a third player into the New Zealand grocery market, while Willis considers options such as 'structural separation' and demerger of existing brands to restructure the duopoly.
- Willis stated that the RFI would help the government determine the next regulatory and legislative changes, noting findings of a 2022 Commerce Commission report that "competition between grocery retailers is muted", "profits are high", "product ranges are limited", and "shoppers pay higher prices than people in many other countries".
- Ernie Newman, a veteran competition consultant, believes the current supermarket market is broken and that the solution involves unraveling the duopoly, potentially by breaking up Foodstuffs and Woolworths into separate companies, strengthening anti-trust legislation, and being realistic about attracting new entrants given the business of scale required.
26 Articles
26 Articles
Willis gets serious about supermarket competition
Nicola Willis strongly signals she’s willing to get serious about supermarket duopoly, writes Anna Rawhiti-Connell in today’s extract from The Bulletin. To receive The Bulletin in full each weekday, sign up here. Nicola Willis seeking information how to attract a third player to market New Zealanders could be forgiven for being wary of announcements about tackling the supermarket duopoly. As Max Rashbrooke wrote for The Spinoff at the end of Fe…
Canberra CityNews
Parra NewsTaking the proverbial: Albo's swipe at big supermarkets
A Canberra family shared their concerns over rising supermarket prices with Anthony Albanese. (Lukas Coch/AAP PHOTOS) By Tess Ikonomou in Canberra Anthony Albanese says supermarkets are “taking the piss” as Labor promises a ban on price-gouging if re-elected, despite the consumer watchdog finding no evidence it was taking place. The prime minister started Sunday in the Labor-held seat of Canberra, visiting a family at their home in Downer. Meeti…
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