New Zealand’s two dominant supermarket operators, Foodstuffs and Woolworths NZ, have cautiously welcomed the Government’s reforms aimed at boosting competition in the grocery sector.
Economic Growth Minister Nicola Willis announced the changes on Wednesday, saying the Government would introduce legislation to fast-track supermarket development, streamline building consents, and remove investment barriers to help new entrants challenge the duopoly.
The reforms follow a Request for Information process earlier this year, which revealed widespread frustration among prospective operators over restrictive zoning, slow consenting, and regulatory hurdles.
In a statement to 1News, a Foodstuffs spokesperson said the co-operative would “carefully work through the detail of today’s announcement”.
“At a high level, it’s positive that the Minister has listened to the industry about what practical steps can be taken to make it faster and easier to build supermarkets and remove barriers for new entrants,” the spokesperson said.
“Streamlining zoning, consenting, and investment rules are positive moves that will reduce cost and complexity. That’s good for New Zealand customers.”
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Foodstuffs defended the level of competition in the market, pointing to rivalry in larger centres and competition between its own independently owned stores.
“New Zealanders have real choice in grocery, with strong rivalry in bigger centres, new players entering the market, and fresh formats emerging all the time.”
The company said it supported fair rules that encouraged investment and innovation, and would continue to work with the Government to ensure changes “work in store for customers and communities”.
Woolworths New Zealand managing director Sally Copland also welcomed the reforms, saying they would help both new and existing operators serve more communities.
“Clearing the way for new, and existing, supermarket operators to enter the market or build new stores will help Kiwi shoppers.”
She said delays of up to four years to build a new store were not uncommon, and that streamlining the process would ultimately benefit competition and consumers.
“While there’s been a lot of discussion about what it takes to get new supermarket operators to enter the market, there have been some major obstacles holding established players back from delivering lower prices in parts of New Zealand.”
Copland also confirmed Woolworths had engaged with the Government during the RFI process and said the company would continue to share its experience in a “fast-paced market” shaped by recent regulatory changes.
“Our main focus is however delivering lower prices for Kiwis, quality fresh produce, and a more convenient shopping experience. And we’re committed to getting on with that.”
