From Nicola Willis <[email protected]>
Subject Delivering better grocery prices for Kiwis
Date March 29, 2025 11:24 PM
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Dear John,
 
Today, I am pleased to share the next steps in our Government’s mission to drive down the cost of groceries for Kiwi families. We know that the cost of living remains a major concern, and we are committed to making real changes that will benefit New Zealanders now and into the future.
 
The current situation
New Zealand’s grocery prices remain among the highest globally, with our market dominated by two major players – Foodstuffs and Woolworths – who hold substantial power. The simple reality is this: The last Government’s reforms have not improved grocery competition or delivered better prices for Kiwi supermarket shoppers.
 
Our response
To address this, Cabinet has agreed to initiate a Request for Information (RFI) process to explore what it would take for a new national-scale grocery retailer to enter the market or for existing competitors to expand. This will help identify the barriers that need to be removed.
 
We will engage with potential entrants such as Costco, The Warehouse, and international retailers like Coles and Aldi, alongside investment groups, iwi organizations, and the existing major players to gather insights and solutions.
 
Exploring Further Reforms
Encouraging a new competitor is important, but we may need to take stronger action. I have also sought expert advice on ways in which the existing supermarket duopoly could be restructured to improve competition. This includes advice on options for the ‘de-merger’ of existing brands, the potential impacts of structural separation on existing entities, and concepts for how this could be achieved.
 
What comes next
The RFI process will move swiftly over the next six weeks, gathering crucial information on how best to drive increased competition. In mid-2025, I will present further recommendations to Cabinet, and if legislative action is required, I intend to introduce and pass necessary reforms within this parliamentary term.
 
This is big task, but we need to get it right.
 
We are determined to see real competition in our grocery sector and deliver the fairer prices that Kiwis deserve, so you can keep more money in your back pocket.
 
Thank you,
Nicola Willis



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