Action On Supermarkets Welcomed

A government announcement expected this week on the prospects for a new supermarket chain is extremely positive, says Sue Chetwin, chair of the Grocery Action Group (GAG).

“It’s great to see the Minister for Groceries Nicola Willis so quick off the mark with her new portfolio,” Ms Chetwin said. “Kiwis are paying some of the highest prices in the world for groceries and would welcome the sort of competition to the duopoly of Woolworths and Foodstuffs that will bring down prices.

“We are particularly interested in hearing on what it will take to get a new large supermarket chain open for business because we think the only realistic option is for a break-up of the current duopoly.

“Doing that would require Foodstuffs and Woolworths to divest part of their operations to a third, entirely separate player.

“Simply rolling away the red tape won’t be enough. For example Aldi’s 20 year journey in Australia is often cited about how long it can take for a new entrant to get up and make any useful headway in restraining grocery price rises. Aldi still has less than 10% of the market in Australia.

“We already have good experience to draw upon from the break-up of our telecommunications market in the 2000’s. Similarly supermarkets should be required to sell off part of their operations to get early competition underway.

“For example, Four Square stores, Pak’nSave or New World under separate ownership could form the basis of a competing chain.

The Grocery Action Group supports any action that would bring fair prices for food for Kiwi consumers.”

About GAG 

The Grocery Action Group was formed to bring down the prices of groceries for all Kiwis. Our vision is to influence government, the regulators and other parties to deliver a competitive and consumer-focused grocery sector in New Zealand. Our board is made up of consumer, industry, supplier and Māori interest experts. For more info visit gag.org.nz

© Scoop Media