Media release - Response to Willis Announcement

Fast-track planning for supermarkets not enough to bring down prices

The Grocery Action Group welcomes Minister Nicola Willis’ commitment to fast tracking planning processes to support potential new supermarkets and acknowledges the prospect of structural reform remains firmly on the table. However, we urge government and policymakers to recognise that only bold, decisive structural reform —targeting both retail and wholesale — will deliver genuine relief to Kiwi consumers at the checkout.

Grocery Action Group chair Sue Chetwin says as it stands, the duopoly held by Foodstuffs and Woolworths continues to stifle competition, restrict choice, and keep grocery prices unnecessarily high. Incremental measures are not enough. “Breaking up this entrenched duopoly is the single most effective course of action if New Zealanders are to see lower prices at the checkout, and to see them quickly.”

The Minister’s announcement today of a fast-track planning process to support the

establishment of potential new supermarkets and pre-approval of standardised designed buildings, will further aid competition but not in the near future, she said.

“We appreciate there is cost and uncertainty in the planning process for potential new supermarket players and a single authority or consortium of authorities to smooth that path would be helpful. But the problem in this country, as the Commerce Commission has pointed out, is not one of too few physical supermarkets. It’s that Woolworths and Foodstuffs control more than 80% of the market.”

Grocery Action understands pursuing structural reform may invite complex legal proceedings and face significant resistance. Nonetheless, it remains optimistic, particularly in light of the recent appointment of former National Party Minister Steven Joyce to the Foodstuffs Board. Mr Joyce has publicly acknowledged that Foodstuffs could voluntarily split up its New World and Pak’nSave operations, creating competition in a stroke.

“We call on all stakeholders to put consumers first. The time for half-measures has passed.

Meaningful, enforceable structural changes — alongside streamlined planning processes for newcomers — are the only way to ensure genuine competition, fair pricing, fair treatment of suppliers and a thriving, accessible supermarket sector for all New Zealanders,” Ms Chetwin said.