If you're like many of us on the Hibiscus Coast, you're likely keeping a close eye on the local supermarket scene.

Recently, the Commerce Commission made a significant decision affecting our grocery shopping landscape.

The proposed merger between Foodstuffs North Island and Foodstuffs South Island has been declined.

This decision comes after concerns were raised that the merger would reduce competition in New Zealand's already concentrated supermarket sector.

According to the Commerce Commission, the merger would have resulted in a single entity holding a 55% national market share.

Currently, Foodstuffs North Island's market share stands at just over 40%.

Experts, including senior lecturer in marketing at the University of Auckland Drew Franklin, argue that breaking up the Foodstuffs entities could be the next logical step.

Drew Franklin, senior lecturer in marketing, University of Auckland.

This would encourage nationwide competition and potentially lead to better prices for consumers.

Franklin notes, "The concentrated supermarket sector in New Zealand means shoppers have less choice and higher prices."

New Zealand has one supermarket for every 12,871 people, significantly fewer than countries like Germany and Ireland.

The Grocery Commission's first annual report also highlighted the need for increased competition in the sector.

Submissions to the Commerce Commission from academics, industry bodies, and Consumer NZ expressed concerns about reduced competition and potential breaches of consumer trust.

This decision aligns with international trends, where regulators are pushing back against supermarket mergers.

For instance, the US Federal Trade Commission blocked the merger between Albertsons and Kroger, citing concerns over price gouging and reduced competition.

As locals, we'll be keeping a close eye on how this decision impacts our grocery shopping experience.