Advocacy Rises for Commerce Commission Review of Foodstuffs Breakup

Advocacy has mounted calling for the Commerce Commission to review the structure of Foodstuffs. Owner-operators of stores including PAK’nSAVE, New World, and Four Square have signed open letters warning that proposals to break up the co-operative could increase costs and threaten investment. The grocers argue that the current shared buying power and infrastructure are vital for smaller and regional communities. This intervention occurs amid political pressure regarding New Zealand's highly concentrated grocery sector.

The calls are aimed at forcing legislative action to split Foodstuffs into co-operatives. While Nicola Willis argues that increased competition would lead to lower prices for Kiwi shoppers, the co-operative operators warn that dismantling the current model could push up costs and threaten the viability of smaller stores.

Nicola Willis advocated for greater competition in the supermarket sector, while the Commerce Commission identified competition issues in the grocery sector.