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Government responds to damning supermarket report on high costs

“There has been a historic lack of action in the supermarket sector, but we have all had a sense that this has been an issue for a long time. This report today really just confirms that.” Clark said he hoped the duopoly of Foodstuffs and Woolworths would read the report carefully, as “their reputation depends on them giving Kiwis a fair deal”. Abigail Dougherty/Stuff Commerce and Consumer Affairs Minister David Clark comments on the Commerce Commission s retail grocery sector draft report. Though Clark did not commit to one of the suggestions in the draft report of creating a state-owned supermarket chain, he did say that the report was an opportunity for the sector to change.

Super duopoly squeezing Waikato households

Foodstuffs and Woolworths NZ hold a duopoly over the sector. The draft report proposes a range of measures to improve competition at the retail and wholesale level, including last-resort options such as a Government backed grocery retailer and requiring supermarkets to sell shops. Dr Anna Casey-Cox,​ a researcher with Poverty Action Waikato, said the cost of groceries is a major stress for many Waikato households. STUFF The Commerce Commission is looking into how competitive New Zealand s grocery retailers are. Basic staples, such of fruit and vegetables, are now priced out of the reach of some. “When food banks were first set up, they were initially seen as a temporary solution. There was an understanding that they weren’t going to be a lasting thing because eventually we’d get it sorted,” Casey-Cox said.

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