By Colin Ambler/cvnznews.com
New Zealand’s supermarket shake‑up is moving far slower than politicians promised — and the Commerce Commission’s latest Annual Grocery Report makes that painfully clear.
Despite two years of reforms, the major supermarket chains still control more than 80% of the national grocery market, margins remain largely untouched, and retail prices continue to rise. Grocery Commissioner Pierre van Heerden says the findings confirm what shoppers already know: competition is barely shifting.
“Reforms need more time to bed in before we see significant improvements,” van Heerden said, noting that while Auckland shows early signs of change, the national picture remains stubbornly static.
The Commission points to two major levers now in play — the Grocery Supply Code and the removal of restrictive land and lease covenants — both designed to stop the big chains from blocking rivals. These changes have made it easier for new entrants to secure land and stock, but the impact is still modest.
There is movement at the fringes. Smaller grocers, specialty food retailers, greengrocers and butchers are expanding their ranges, and non‑traditional retailers are increasing grocery sales. But these operators remain minnows in a market dominated by two giants with deep pockets, entrenched supply chains, and decades‑long land control.
Van Heerden says consumer behaviour will matter: “If you’re able, mixing up where you get your groceries from will help competitors grow.” But for many households, convenience and price pressure mean the weekly supermarket shop remains unavoidable.
The Commission’s supplier survey paints a similar picture to 2024: suppliers still face the same pressures, the same power imbalance, and the same cautious optimism that regulatory oversight might eventually shift the dial.
For now, the watchdog is signalling one thing clearly — the duopoly hasn’t budged, and only sustained scrutiny will stop old barriers from re‑emerging.
