New Zealand wants to boost competition in the supermarket sector

WELLINGTON, May 30 (Reuters) – New Zealand wants to introduce a number of changes to the supermarket sector as two dominant players have raised competition concerns, its trade minister said on Monday.

The New Zealand supermarket sector is dominated by two players, Foodstuffs NZ and Woolworths (WOW.AX).

“The government and New Zealanders have been very clear that the supermarket industry is not working. It is not competitive and shoppers are not being treated fairly,” the trade minister said. and Consumer Affairs, David Clark, in a statement.

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“The duopoly must change, and we are preparing the necessary legislation to do so.”

The government’s plan to introduce a number of new requirements will help bring prices down and tackle inflation, which is at its highest level in three decades.

These rules will include a mandatory code of conduct for supermarkets, creating an independent industry regulator, requiring grocery prices to be displayed consistently, and allowing grocery suppliers to bargain collectively.

A recent Commerce Commission inquiry into the sector recommended changes to supermarket operations to increase competition and help improve the price, quality and range of groceries and services for New Zealanders.

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Editing by Jacqueline Wong

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