Supermarket Competition

The story so far

In March 2025 Finance Minister Nicola Willis said the Government was looking at ways to break up the supermarket duopoly, including land access, tax breaks and possibly restructuring or breaking up the existing chains.^{19, 28, 30 Mar 2025} The Government issued a request for information to potential challengers on the regulatory changes needed, while Labour criticised the plan as paying lip service to reform.^{30, 31 Mar 2025} In mid-2025 the Commerce Commission warned Foodstuffs North Island over a likely breach of the Grocery Industry Competition Act, then began civil proceedings against it and Gilmours Wholesale over alleged cartel conduct and breaches of grocery sector rules.^{2, 15 Jul 2025} Supermarkets pleaded guilty to Fair Trading Act breaches over pricing errors and misleading specials, and Stats NZ figures showed food prices up about 5% in the year to July and August 2025, led by dairy, with Willis promising supermarket competition announcements.^{25 Jul 2025; 15, 27 Aug 2025; 16 Sep 2025} By September 2026 competition had become an election campaign issue: the Greens proposed a state-owned KiwiMart chain, National proposed splitting Foodstuffs, Te Pāti Māori launched a kai sovereignty policy, and ACT proposed a single consenting pathway for new supermarkets.^{6, 21, 28 Sep}

Latest

Foodstuffs released a commissioned Houston Kemp review disputing the benefits of separating Pak'nSave from New World and Four Square, claiming it could cause industry-wide losses over 20 years.^{1 Oct} Former Prime Minister Sir John Key questioned National's split policy, though current National leaders dismissed his comments, and ACT leader David Seymour stepped up criticism of the plan by working a shift at a St Heliers Four Square.^{28 Sep; 2 Oct}

Key moments

1. 28 Mar 2025Willis signals Cabinet decisions to attract a third supermarket competitor
2. 31 Mar 2025Government launches request for information to bring in new supermarket challengers
3. 15 Jul 2025Commerce Commission files proceedings against Foodstuffs North Island and Gilmours
4. 15 Aug 2025Stats NZ reports food prices up 5%, led by dairy
5. 6 SepGreens propose state-owned KiwiMart chain buying 120 existing stores
6. 28 SepACT proposes single consenting pathway for new supermarkets
7. 1 OctFoodstuffs releases review disputing benefits of spinning off Pak'nSave

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