Finance Minister Nicola Willis has announced that following this week’s budget, she will focus on increasing competition within New Zealand’s supermarket sector, which is currently dominated by the Woolworths and Foodstuffs chains.
The government has stated that all options remain on the table to introduce more competition. Willis also revealed that they have received numerous submissions during a recent request for information period, with input from investors, prospective competitors, and existing supermarket operators.
“We’ve met with a number of major supermarket chains and smaller operators who have an interest in this area,” Willis said in a statement.
“We’re now putting together proposals off the back of all their recommendations about what the next steps will be to get a better deal for Kiwi shoppers.”
Finance Minister Nicola Willis expressed confidence that introducing additional competitors into the supermarket sector would result in better prices for products like dairy, pointing to the lower prices currently offered by the supermarket giant Costco as an example.
“What I know is that where you get a new competitor into a community, it often lowers prices not just there but at the surrounding supermarkets too.”
“If you look at something like Costco, you can get a kilogram of butter there for less than $10 at the moment … whereas most New Zealanders are paying $10 for half that much butter.”
Willis emphasised that the government would pursue a forced breakup of the supermarket duopoly only if it leads to improved benefits and more affordable options for consumers.