May 12, 2022
Consumer joins push to break supermarket duopoly
Consumer New Zealand is calling for Government action on the supermarket duopoly.
Chief executive says John Duffy says its Stop the Super Profits online petition is a chance for people to let Commerce and Consumer Affairs Minister David Clark know what they feel before he makes his decision on what action should be taken over a Commerce Commission investigation into supermarket profits.
He says evidence put to the inquiry made it clear Foodstuffs and Woolworths are making million of dollars a day more than they would if there was price competition.
Current policy settings have allowed them to consolidate retail, wholesale and distribution allowing them to exert unfair pressure on suppliers and blocking new entrants.
“Where would that business buy its wholesale groceries from? At the moment the only choice it has at a practical level is to try to buy from the existing two supermarkets who aren’t going to be particularly keen to sell to an upcoming new competitor,” Mr Duffy says.
He says what’s needed is tougher rules and maybe even government coming into the wholesale sector.
The petition on Consumer NZ’s website already has more than 50,000 signatures.