Who do the politicians think they are kidding! Attempting to break up the so called duopoly.
There are plenty of other competitors in the supermarket and associated grocery business space.
This feels like just another glaring example of what happens in NZ, talk is cheap, and whilst it sounds grandiose, and good for the people, its just playing to the masses creating false hope.
With some of the commentary saying that the BIG 2 would have to sell sites, sell banked land, and give up stores is just nonsense. That concept is just another Labour Party utopia. It would sit well on the list of failures of what NZ has experienced in the last 6 years with Labour over promising, and then delivering absolutely nothing.
The Warehouse is probably the best hope for some sort of third player, they have the land, and buildings, they have the space, and they have the buying power – but so far they seem unsure that its the way forward.
Back in early 2022 the Warehouse CEO said they would look to enter the grocery market, but wanted a ‘level playing field’.
The Warehouse also said in September 2022 that it did NOT intend to become a supermarket that offered hundreds of cereals, but rather a ‘limited range’ of key basics.
The Government said in May (2022) it would “urgently pursue” options to generate more competition in the supermarket sector – and the big operators would need to open up their wholesale arms to competitors, or face regulation. It was responding to the Commerce Commission’s review of the sector which found that the supermarket giants could be making $430m a year in excess profits.
Emphasis on ‘could be’ making excess profits.
So once again this is another failed Labour Party attempt at policy, and a failed to attempt to deliver anything meaningful to the NZ consumer.
Since May 2022 the Labour government delivered nothing, other than a Commissioner who the next government can work with.
Costco has enter the NZ supermarket game, with much fanfare, but 1 store miles away from most people is hardly going to make any difference.
Given the price of petrol in NZ, the price savings are negated by the fuel cost to just get there and back. But you dont hear anyone talking about that, or that fact that you need to buy 800 rolls of toilet paper at once.
The last Labour government created huge amounts of inflation, and day to day business costs – all affecting the pricing of not just the supermarkets, but near on every business in NZ.
The incoming National led coalition would be better served concentrating on bringing down inflation, the overall cost of living, and making sure the banks return to helping grow the economy.
The removal of the CCCFA would be a good start.
Another entrant into the NZ supermarket space is years away … I wonder if the politicians forgot that buildings need to built for starter – and we all know just how effective the Councils are at allocating resource consents.
Sadly this feels like another circus that will achieve nothing.