As part of our work to bring down the cost of living, we’re taking action on supermarkets to make sure New Zealanders are paying a fair price at the checkout.
We know the competition in the supermarket industry isn’t working. Kiwis aren’t getting a fair deal. People are fed up with paying a premium for just the basics, while supermarkets earn $1 million a day in excess profits.
The situation needs to change, so we’re working hard to increase competition.
Here's what we're doing:
We’re requiring supermarkets to open up wholesale access for their competitors, at a fair price. Here in New Zealand, we currently have one of the most concentrated grocery retail sectors in the world and the high prices we’re facing are driven by the lack of competition in the sector. Opening up wholesale access will make it easier for new competitors to enter the grocery market and ensure fairer prices for Kiwis.
- We’ve appointed a Grocery Commissioner as a ‘watchdog’ to and keep supermarkets honest.
We’ve stopped big supermarkets locking competitors out of prime locations, with more than 140 pieces of land already handed back following Government action.
- We’re introducing a mandatory code of conduct and compulsory unit pricing on grocery products to make it easier for consumers to compare prices.
Together, these changes see New Zealanders benefit from more choice of where to shop for groceries. Giving people the power of choice will push retailers to provide the best deals possible and bring new grocery services and products to the table.
There’s still more to happen, but the sector is already changing as a result of our action following the market study into supermarket competition. In the last month alone, we’ve seen new grocery retailers who have created their own brand of butter, and large supermarkets create price freezes on products.
Now, we’ve announced the next step in our work to ensure Kiwis get a fair deal, with a new market study into competition in the banking sector. Like our work on supermarkets, this will help us make sure there’s a competitive market among banks so people can be confident that they’re getting the best deal possible. Find out more here.
Supporting households with the cost of living
Taking action on supermarkets is just one of the ways we’re helping to reduce financial pressures on Kiwi households. We recently delivered practical cost of living support across some of the core expenses facing Kiwi families – childcare, healthcare, transport and power bills. Find out more about the cost of living package here.
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