Labour proposes splitting Foodstuffs and Woolworths from their wholesale arms
The New Zealand Labour Party has proposed a policy to force major supermarket chains Foodstuffs and Woolworths to separate their wholesale and retail operations. The party argues this will increase competition and lower prices for smaller independent grocers.
Why it matters
This policy addresses the high cost of living and market concentration in the grocery sector, which is a significant political issue in New Zealand.
Labour would force Foodstuffs and Woolworths to run their wholesale operations independently from their retail stores, if elected in November.
The party says the policy would give smaller grocers more places to buy products, and make it easier for new supermarkets to open and grow.
Having previously criticised National's plan to pursue splitting Foodstuffs up as just another review, Labour's commerce and consumer affairs spokesperson Arena Williams said Labour would take immediate action.
"The big supermarkets can favour their own retail stores, meaning smaller shops and independent supermarkets end up paying more. That makes it harder for them to compete and offer you a better deal," she said.
Labour wants to create two independently run wholesalers, Foodstuffs Wholesale and Woolworths Wholesale.
The previous government had told Woolworths and Foodstuffs to strike supply deals with retailers, or face being forced to sell at prices set by regulation.
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