The Commerce Commission spotlighted two commercial behaviours it believes are reinforcing the powerful positions of the major supermarkets and big grocery suppliers.
Grocery Commissioner Pierre van Heerden stated that the current grocery market is not serving New Zealand consumers well. The status quo lets a few major players set the rules for the rest of the industry, which is negatively impacting consumers, new and expanding competitors, and small suppliers.
“These major players are the three main supermarkets and large national and multi-national suppliers. Their significant market share allows them to influence the market settings,” he said.
“This limits the ability for competing retailers to enter and grow in the market and often results in smaller suppliers getting an unfair deal."
The Commission has released its draft report on the review of the Grocery Supply Code and Initial Views on the Inquiry into the Wholesale Market, focusing on two issues it believes need to be addressed to improve outcomes for consumers.
Woolworths New Zealand’s Interim Managing Director, Pieter de Wet, added that New Zealanders are facing cost-of-living pressures, and Woolworths' absolute priority is delivering great products, great prices, and a fantastic shopping experience for its customers, as well as building a meaningful wholesale business.
“We’ll now take the time to read the draft documents issued by the Commerce Commission in detail and will work constructively with the Commission through the submission process.”
The Foodstuffs Co-ops also supported efforts to ensure a grocery market that works well for all New Zealanders. They said the Commerce Commission’s work on both the Grocery Supply Code and the regulated wholesale market is an important part of this.
"We will take time to review the draft report and preliminary findings and recommendations in detail and, as always, remain committed to engaging constructively and providing meaningful input through the consultation process," said the co-ops.
"Our focus continues to be on delivering value to Kiwi consumers by buying well for them, strong relationships with our suppliers, and contributing to a competitive, sustainable grocery sector."
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