Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Consumer NZ Welcomes Supermarket Investigation

 

Consumer NZ is welcoming the government’s announcement the supermarket industry will be investigated in a market study to be done by the Commerce Commission.

Consumer NZ chief executive Jon Duffy said his organisation had been

campaigning for an investigation into the supermarket sector

and the announcement was good news for shoppers.

“New Zealand has one of the most concentrated supermarket industries in the world, dominated by two players. When you’ve got a market like this, there’s a big risk that consumers will end up paying higher prices because the usual competitive pressures don’t apply,” Duffy said.

Despite the high degree of concentration, the industry hadn’t been subject to any significant scrutiny from regulators.

“We need a wide-ranging investigation to gauge the degree to which the stores’ market power is affecting how much consumers pay,” he said.

Consumer NZ wanted the investigation not only to look at supermarkets’ contracts with their suppliers, but also the stores’ pricing practices and promotion of their private label brands. Private labels – the supermarkets’ own brands – offer the stores’ higher returns but mean other brands can be pushed off shop shelves.

“Supermarkets have a huge influence on the food supply chain, from the farm gate to the dinner table. Their practices not only affect what choices are available to consumers – and which brands end up on shop shelves – but also what we pay at the checkout. Consumers have the right to know whether this market power is being misused.”

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

In September, Consumer NZ made a complaint to the commission asking it to use its market study powers to investigate levels of competition in the industry. It also asked the commission to investigate supermarkets’ price promotions.

“The stores employ a confusing array of price promotions, which risk misleading consumers about the discount they may be getting. Based on our research, we think there are good grounds to question whether some of these discounts are genuine.”

The commission is required to complete its market study by 23 November 2021.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.