Govt commits to removing hurdles for supermarket entrants

13th February 2025 By Paul Yandall | paul@propertyticker.co.nz | @propertyticker

Nicola Willis says she will remove unnecessary regulatory hurdles that discourage new entrants from entering New Zealand’s highly concentrated grocery market.

The economic growth minister announced the aim during an update on the government’s Going for Growth initiative.

“Studies have shown that New Zealand shoppers pay more for kitchen staples than their counterparts in the United Kingdom, Ireland and Australia,” Willis said.

“The market lacks competition with three large entities, two of whom don’t compete in the same island, effectively controlling 82% of the market. We need more competition to put downward pressure on prices and deliver a better deal for shoppers.

“Therefore, I am determined to remove unnecessary regulatory hurdles that discourage new entrants from entering the market.”

She said the steps the government could take included cracking down on predatory pricing, ensuring all competitors have fair access to products, assisting new entrants to find suitable land and properties for development, and helping them attract international capital.

“The weekly supermarket shop makes up a significant proportion of most people’s weekly budget and contributes massively to their cost of living,” Willis said.

“The Going For Growth snapshot details more than 80 actions that have either been completed since the government took office or are underway.

“lnflation is now back under control but to deliver the opportunities and high-quality public services people expect we need to build a stronger, wealthier and more resilient economy that benefits all New Zealanders.

“Going For Growth details how the government is going about that task.”

There are five pillars under the plan:

Developing talent,
Competitive business settings,
Promoting global trade and investment,
Innovation technology and science, and
Infrastructure for growth.

“Under each pillar are actions already underway to support growth, with more to come,” Willis said.

“To grasp the opportunities in front of us, we must lean in and boldly pursue the things that will make this country the wealthier country we want it to be. 

“We must adopt a ‘yes’ mentality when sometimes it is easier to say ‘no’.”

Submissions on the government’s Going for Growth initiative can be made here.