New Zealand Green Party proposes state-owned supermarket to break duopoly

The Green Party has proposed a plan to dismantle the New Zealand supermarket duopoly by establishing a publicly owned supermarket chain named ‘KiwiMart’. As part of its ‘Affordable Kai’ election policy, the party aims to require the sale of at least 120 existing stores and the transfer of distribution centre capacity into public ownership to foster competition.

Industry groups, including Monopoly Watch New Zealand (MWNZ) and the Grocery Action Group (GAG), have noted that a pathway to cheaper groceries appears clearer following recent announcements regarding the purchase of existing supermarkets and the establishment of new distribution capacity. These groups argue that addressing distribution infrastructure, rather than simply increasing the number of storefronts, is the key to overcoming structural bottlenecks in the market.

The Green Party policy also includes measures to ban price gouging in the grocery sector, with intentions to extend such bans to the energy and fuel industries. Additionally, the proposal seeks to increase the funding, penalties, and powers of the Commerce Commission.