Summarised by Centrist
Supermarkets in New Zealand are under fire after expanding their profit margins on non-fresh food. The Grocery Commissioner is now calling for stronger regulatory tools to open up the grocery sector.
While supermarket giants claim falling profits, critics argue the “duopoly” continues to squeeze consumers and suppliers.
In the Grocery Commissioner’s first annual report, Pierre van Heerden revealed that New Zealand’s $25b grocery sector remains dominated by three supermarket chains—Woolworths and Foodstuffs North and South Island—which continue to expand their profit margins.
Despite supermarket claims of declining profitability, the report notes that price increases for non-fresh products have outpaced supplier costs.
Van Heerden argued for the need for stronger regulatory intervention to encourage competition and protect consumers, including a proposed code of conduct and penalties for wholesale providers.
