National vows to 'pursue' break up of supermarket giant Foodstuffs
New Zealand's National Party has proposed breaking up the Foodstuffs supermarket duopoly to increase competition and lower grocery prices. The plan is contingent on a six-month Commerce Commission review and would require an electoral mandate before implementation.
Why it matters
This policy represents a significant intervention in the retail sector, addressing the cost-of-living crisis through structural market reform.
National has made a supermarket break-up a key part of its election pitch, proposing to sever Pak'nSave from New World in a bid to drive down grocery prices.
The shake-up would be contingent on a six-month review by the Commerce Commission into whether the split would actually leave shoppers better off.
If the watchdog gave it the green light, National said it would legislate to force through the separation.
The significant policy was announced with little warning on Wednesday morning, and on the same day that Labour promised to ban big companies from charging excessive prices.
Foodstuffs - made up of two co-operatives - currently manages all New World, Pak'nSave and Four Square stores.
National's plan would split them up, leaving the country with three nationwide supermarket chains: Pak'nSave, New World/Four Square and Woolworths.
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