A state-owned, ‘no frills’ competitor would have one goal: to move commodities efficiently from producers to consumers as cheaply as possible.
Articles on Foodstuffs NZ
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Despite the hopes pinned on international supermarket brands, the answer to New Zealand’s supermarket woes lies with breaking up the companies that are already here.
New Zealanders have less choice over their grocery shop than consumers in most developed countries. Breaking up the existing supermarket conglomerates would be a next logical step.
Foodstuffs has applied to merge its North and South Island operations. But this move will only further concentrate market power and the biggest losers will be New Zealand consumers.
Most consumers want a better deal, but New Zealand’s small size and relative isolation make it hard for large-scale competitors to enter the supermarket sector.
Top contributors
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Retail Academic Researcher, Business School, University of Sydney
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Associate Professor of Marketing, University of Sydney
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Senior Lecturer in Marketing, University of Auckland, Waipapa Taumata Rau
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Professor of Agricultural Economics, Lincoln University, New Zealand
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Senior Lecturer in Marketing, Te Herenga Waka — Victoria University of Wellington