Kia ora John,

You might have heard that our Government is taking action on supermarkets, so New Zealanders get a better deal at the checkout.

This afternoon, during a visit to the new Costco site in West Auckland with the Prime Minister, I shared an update on this work – and I wanted to share the news with you too, John.

We know supermarkets aren’t playing fair. The recent Commerce Commission study found major chains rake in around $1 million every day in excess profits, while new competitors and smaller players are locked out of the market. At the end of the day, New Zealanders are paying the price.

To make sure you get a better deal on your weekly shop, we’re shaking up the supermarket sector - and work is well underway.

Here’s how we’re making sure you pay a fair price for your groceries:

1. We’re establishing a Grocery Commissioner to keep supermarkets honest. The Commissioner will act as a watchdog and will be able to issue warnings and fines.
2. We’re introducing a mandatory code of conduct for supermarkets, to ensure suppliers and customers get a fair deal.
3. We’ve stopped big chains blocking competitors from setting up shop. This will mean more choice and competitive prices for shoppers.
4. We’re making supermarkets open up their wholesale storerooms at a fair price, allowing more independent operators to enter the market.
5. We’re introducing compulsory unit pricing on grocery products, making it easier for you to compare deals.

Together, these five changes will increase competition within New Zealand’s supermarket sector, and ultimately, will mean better prices at the checkout for you, John. Our supermarket overhaul won’t happen overnight, but we’re moving at pace - and our changes are already making a difference, with supermarkets beginning to roll back prices. You can read more here.

Taking action on supermarkets is just one of the ways we’re supporting New Zealanders with the cost of living. We know global factors like rising inflation are making things tough for many families, which is why we’ve put in place a range of measures to help.

For example, we’ve extended the fuel tax cut and half price public transport fares to help with transport costs, we’ve increased Working for Families and Superannuation, and next week, the second instalment of our Cost of Living Payment will go out.

We know there isn’t a simple fix for the current cost pressures, but measures like these - along with our work on supermarkets - will help to make things more affordable for Kiwi families. If you’d like to know more about how we’re easing the pressure, you can learn more here.

Thanks,
David Clark

P.S. For a peek behind the scenes at today’s Costco visit, check out this video from Jacinda.