National to campaign on splitting up Foodstuffs but only with Commerce Commission approval
The New Zealand National party's plan to restructure the Foodstuffs grocery chain faces internal coalition uncertainty and skepticism regarding its viability. The policy aims to create a third major supermarket competitor to reduce the 82% market share currently held by two dominant firms.
Why it matters
The proposal highlights the political tension surrounding cost-of-living interventions and the challenges of regulating market-dominant co-operatives.
The survival of National’s plan to split up Foodstuffs in future coalition negotiations remains uncertain as the three governing parties take potshots at one another over who came up with the policy and its viability.
The policy, announced by National leader Christopher Luxon and finance spokeswoman Nicola Willis, proposed separating Foodstuffs North Island and Foodstuffs South Island, which manage the country’s New World, Pak’nSave and Four Square stores, to drive greater competition between the two co-operatives and lower prices.
However, it would require Commerce Commission sign-off following a six-month assessment after the election, should National be re-elected.
National’s policy intended to have New World and Four Square as one nationwide chain and Pak’nSave as another, therefore creating a third supermarket player to dilute the 82% market share held by Foodstuffs and Woolworths, which owns Countdown.
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