National vows to 'pursue' break up supermarket giant Foodstuffs
New Zealand's National party has proposed breaking up the supermarket giant Foodstuffs to increase competition and lower grocery prices. The policy would be subject to a six-month Commerce Commission review before potential legislation.
Why it matters
This represents a significant shift in economic policy aimed at addressing the cost-of-living crisis through market intervention.
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.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in