GAG’s Sue Chetwin has called for greater supermarket competition following HoustonKemp’s review of the projected benefits of separating Foodstuffs’ PAK’nSAVE and New World/Four Square brands.
Foodstuffs commissioned the review, which challenged the restructuring model’s assumptions and implied price and profit reductions.
Chetwin pointed to the Commerce Commission, OECD, and Sense Partners’ work for MBIE and the Government as evidence supporting action on competition. She said New Zealand shoppers were paying too much at the checkout and supermarkets were making excessive profits.
“Of course Foodstuffs will stump up with a report that says all the other experts are wrong, but I know who I believe,” said Chetwin.
“Most of the political parties realise that too - Kiwis are being ripped off. Their policies are all about setting up more competition not less. That will help supermarket owners, growers, suppliers and customers. It can’t happen soon enough.”
HoustonKemp’s review focused on whether the modelled benefits of restructuring were economically plausible. It did not conclude that New Zealand’s supermarket industry was competitive.
