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Splitting up Foodstuffs: Would It Actually Drive Down Grocery Prices?
National says the split would create two competing grocery chains and could be legislated within 100 days if the Commerce Commission approves it.
- On Wednesday, National proposed splitting Foodstuffs into two competing nationwide grocery chains, a move requiring Commerce Commission approval to determine whether it would leave shoppers better off.
- Foodstuffs and Woolworths currently control about 82 percent of the grocery market, prompting National to pursue structural separation after previous interventions like the Grocery Commissioner and Grocery Supply Code failed to boost competition.
- Finance spokesperson Nicola Willis said modeling suggests the split could save households up to $1320 annually, potentially pushing down grocery prices about 5 percent over six years while delivering $12.6 billion in consumer benefits.
- Legislation would amend the Grocery Industry Competition Act, requiring the Commission to complete a six-month assessment while ensuring no individual store owner is forced to sell or rebrand.
- BusinessNZ director of advocacy Catherine Beard warned the proposal risks undermining regulatory stability for foreign investors, while Labour simultaneously unveiled plans to outlaw price gouging as the election campaign intensifies.
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National To Pursue Separation Of Foodstuffs
“New Zealanders are paying more than they should for groceries because supermarket competition is still too weak. Families deserve more choice, better prices and supermarkets that have to fight harder for their dollars,” Ms Willis says.
·Wellington, New Zealand
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Coverage Details
Total News Sources16
Leaning Left3Leaning Right1Center4Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 38%
C 50%
12%
Factuality
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