Finance Minister Nicola Willis is set to unveil the government’s strategy to challenge the supermarket duopoly in the country. The announcement follows the Cabinet’s agreement on the next steps to increase competition in the supermarket sector.
Nicola Willis, who also serves as Economic Growth Minister, assumed responsibility for the supermarket delegation earlier this month after newly appointed Commerce and Consumer Affairs Minister Scott Simpson stepped aside due to a conflict of interest.
The conflict reportedly stems from Simpson having a close family member who owns a supermarket.
Meanwhile, the incentives to entice supermarket competition may include tax benefits or infrastructure assistance, such as making government-owned land available for a new operator.
While there is interest from local businesspeople in creating a supermarket chain, Willis said they have also been exploring ways to attract an international player. However, no confirmation of a third player is expected to be made on Sunday, as that process is still underway.
In February, Willis expressed her preference for a local company to challenge the duopoly giants, Foodstuffs and Progressive.
Foodstuffs and Progressive have faced prosecution by the Commerce Commission for “inaccurate pricing and misleading specials”. The commission is currently conducting a probe into the wholesale market, with a report expected by mid-year.
In a conversation with RNZ last month, Willis said that while a quicker solution would involve breaking up one or both members of the current duopoly or requiring them to release unused land to new competitors, this was a less favoured option. She emphasised her openness to considering the recommendations from the Commerce Commission’s ongoing investigation.