National Party proposes splitting Foodstuffs into two competing grocery chains

The National Party has proposed a structural separation of Foodstuffs into two competing grocery chains if re-elected. Under this plan, the cooperative would be split so that New World and Four Square operate as one nationwide chain, while PAK’nSAVE operates as another. This would create three major nationwide grocery chains in New Zealand alongside Woolworths.

Finance and economic growth spokesperson Nicola Willis stated that the party would amend the Grocery Industry Competition Act within its first 100 days to empower the Commerce Commission. The Commission would be tasked with developing and assessing a detailed implementation plan and providing a recommendation within six months. The goal is to determine if the separation can be delivered in a way that benefits consumers.

The Grocery Action Group welcomed the announcement, noting that increased price competition from separating PAK’nSAVE from New World and Four Square should benefit shoppers, particularly in regional areas. Conversely, BusinessNZ criticized the policy, stating it sends a ‘chilling signal’ to businesses and foreign investors.