Laws already exist within the Fair Trading Act around unfair terms in consumer contracts, however, Wilson said they would like to see similar requirements in grocery supply contracts. So requirements for those contracts to be fair and not have any terms in them that significantly advantage the supermarket over the supplier. So if that was a condition either in a mandatory code of conduct or as an amendment to the Fair Trading Act, it would have a lot more heft, and if the commission had the power to prosecute when the major chains were not playing ball, it would create a significant incentive on the stores to change their practices.
Consumer NZ backs Commerce Commission proposals for supermarkets - www indianweekender co nz
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I m grateful for Homebrand - shoppers give their two cents on supermarket duopoly
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But the grocery market has not attracted big names to the same extent, although Costco is making headway with its Auckland superstore and confirmed it was looking to open by the middle of next year. “The brand people would love to see is definitely Aldi,” said First Retail Group managing director Chris Wilkinson, who described it as a potential disruptor.
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Aldi is a massive global player, and can use that to keep prices low. The German low-price supermarket opened its first Australian store in 2001, and has been registered with the New Zealand companies office since 2000. Most of its products are home brand, said Wilkinson. It also brings in “very odd types of categories”, for example toasters or beach toys, keeping shoppers loyal and interested.
Commerce Commission to reveal findings on supermarket chains, prices
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