Labour proposes separating NZ supermarket wholesale and retail arms

The Labour Party has proposed a reform of New Zealand’s grocery sector aimed at increasing competition by separating the wholesale and retail arms of major supermarkets. If elected, Labour would require Foodstuffs and Woolworths to operate their wholesale businesses independently from their retail operations.

Labour spokesperson Arena Williams stated that the policy is designed to prevent large supermarkets from favoring their own retail stores, which currently makes it more difficult for smaller grocers and independent supermarkets to compete. The plan also includes removing restraint of trade rules that prevent stores like Four Square from lowering prices or switching chains, and would include guarantees to ensure smaller retailers have access to wholesale goods.

Other political parties have responded critically to the proposal. The National Party has campaigned on splitting Foodstuffs, but noted that a 2022 Commerce Commission study found separating wholesale and retail operations was not necessarily desirable. ACT leader David Seymour described the Labour policy as unworkable, suggesting it would require excessive bureaucracy to manage fair pricing.