The Government is stepping up its efforts to tackle high supermarket prices by boosting competition in the sector, says Economic Growth Minister Nicola Willis.

Recent studies show that New Zealanders are paying higher prices for everyday grocery items compared to shoppers in countries like the United Kingdom, Ireland, and Australia.

The supermarket market in New Zealand is dominated by three large companies, with two of them controlling 82 percent of the market share, limiting competition and keeping prices high.

“The weekly supermarket shop is a major part of most Kiwi households’ budgets and plays a huge role in the cost of living,” Willis said.

“We need more competition in the market to put downward pressure on prices and deliver better deals for shoppers.”

The Government is taking decisive action to break up this market dominance.

Plans include cracking down on predatory pricing, ensuring fair access to products for all retailers, and making it easier for new competitors to enter the market.

Measures also include assisting new entrants in securing land and attracting international investment.

Willis' announcement was made alongside the release of a progress report detailing the Government’s “Going for Growth” initiative, which highlights over 80 actions aimed at stimulating the economy.

This report reveals the government’s ongoing efforts to bolster economic growth, create jobs, and reduce the cost of living for New Zealanders, particularly through initiatives designed to encourage competition in essential sectors like supermarkets.

With inflation now under control, the focus is on creating a more resilient economy that benefits everyone.

This includes prioritising five key pillars: developing talent, promoting competitive business settings, encouraging global trade, fostering innovation, and improving infrastructure.

“We must ensure that every business, no matter how large or small, has the ability to compete fairly. By improving competition in the supermarket sector, we’re directly addressing the everyday concerns of New Zealand families,” Willis noted.

For many Coasties the cost of their weekly grocery shop is a heavy burden, and the Government's measures are intended to ease that pressure.

By creating a more competitive supermarket environment, the goal is not only to lower prices but also to enhance consumer choice and improve the overall quality of products available in the market.

The “Going for Growth” report shows that the Government is serious about pursuing bold, proactive actions that lead to long-term economic benefits.

As this initiative moves forward, local communities can expect to see changes that could make their grocery bills more affordable.

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