According to Foodstuffs North Island (FSNI), the latest Annual Grocery Report reflects a sector that has continued to evolve, with growing competition in larger centres and ongoing investment needed to support smaller communities.
The Commerce Commission’s Annual Grocery Report noted continued progress across regulatory compliance and highlights areas for further improvement as part of its ongoing monitoring role.
FSNI CEO Chris Quin said the co-operative supports the Commission’s focus on ensuring competition works well for New Zealanders.
“Significant progress has been made, and we’re committed to continuing that,” said Quin.
“Over the past few years, the grocery landscape has shifted. As the report notes, in larger urban areas in particular, customers are seeing more choice, more formats, and new ways to shop, which is a positive development.”
Quin said traditional measures of competition, such as a single “main shop”, have changed significantly, and customers now shop an average of 5.3 times a week across 3.5 brands as customer behaviour evolves.
“People are shopping more often, across a wider range of stores and channels, depending on what they need and what represents value at the time. That’s an important shift when thinking about how competition is working in practice.”
Quin said the changes reflect broader pressure on household budgets and increasingly deliberate consumer behaviour.
“Nearly half of New Zealanders are planning grocery trips more carefully, around 39 percent are actively trying to spend less on food and groceries, and more than a third are choosing cheaper brands to help manage household budgets.
“At the same time, cross-shopping is now effectively the norm, with 95 percent of New Zealanders shopping outside traditional supermarkets for value, convenience or specialty products. Customers have more options than ever before, and they’re using them.”
At the same time, Quin said the co-operative remained mindful that competition looks different in smaller and more remote communities. In many towns, there may be only one supermarket that offers a full range.
In those places, FSNI is focused on investing in stores, employing local people, and supporting suppliers and community groups. The co-op model plays an important role in making that viable.
“We’ve consistently said that new investment follows population and demand, and it’s encouraging to see that reflected. Our priority is to keep opening and improving stores where communities need them.”
FSNI has continued to make steady progress across compliance and operational improvements while maintaining a strong focus on customer value.
Key progress across 2025–26 includes:
- Continued investment in new and upgraded stores across the North Island, including the opening of New World Pt Chevalier in Auckland and refurbishments of PAK’nSAVE Mill St (Hamilton), PAK’NSAVE Kapiti, New World Whanganui, New World Otaki and Gilmours Hawkes Bay Cash & Carry.
- Implementation of the Grocery Supply Code 2025, the second version of the Grocery Supply Code that came into effect on 1 May 2026, included training for thousands of team members and strengthened supplier engagement.
- Further investment in digital capability, supply chain resilience and pricing integrity systems.
- Expansion and refinement of regulated wholesale supply, supporting greater participation over time
- Continued transparency initiatives, including the Infometrics-Foodstuffs Grocery Supplier Cost Index and customer-facing value programmes
- Significant programmes of work to implement and comply with Grocery Market Regulation, including Unit Pricing Regulations and the Consumer Complaints Disclosure Standard.
Quin said the co-operative is focused on getting on with the job in a more regulated environment, while continuing to deliver for customers despite ongoing pressure from supplier cost increases and broader inflation.
“We’re working hard to keep prices as low as we can, absorbing costs where possible and improving efficiency across the network.”
Quin said Foodstuffs would continue to engage constructively with the Commission and other stakeholders as the regulatory framework matures.
“This is an ongoing process. We support a competitive, transparent grocery sector, and we’ll keep playing our part in making sure it delivers for customers, suppliers and communities right across New Zealand.”
