National Party Proposes Breaking Up Foodstuffs to Lower Prices

The National Party has announced a plan to structurally separate Foodstuffs, one of New Zealand's two dominant grocery chains, if it wins the November election. The proposal would split Foodstuffs into two independent nationwide entities: one consisting of New World and Four Square, and another comprising PAK’nSAVE. This restructure would create three major nationwide chains alongside Woolworths.

Finance spokesperson Nicola Willis stated the move could save households between $200 and $1,320 annually and generate $12.6 billion in consumer benefits over 20 years. However, analysis by Sense Partners suggests a lower net economic gain of $2.9 billion and warns of significant legal hurdles. The policy targets the corporate structure rather than owner-operators, who would retain their stores.

If elected, National intends to amend the Grocery Industry Competition Act within its first 100 days. This would empower the Commerce Commission to conduct a six-month independent assessment to determine if the separation delivers net benefits for shoppers. National will only legislate the split if the Commission recommends it.

Labour Party leader Chris Hipkins dismissed the proposal as merely another review. In response, National leader Christopher Luxon criticized Labour for lacking substantive solutions. Meanwhile, the Labour Party has proposed a competing policy to outlaw price gouging by companies with significant market power.