Photo: RNZ
The Commerce Commission says competition in the grocery sector is poor with Foodstuffs and Countdown essentially a duopoly dominating the market with little room for new entrants or competition. But in a draft report this morning, it has stopped short of recommending that the two major players be forced to give up some of their stores to make way for new players.
The government ordered the study last year into whether there was enough competition in the sector, pricing practices, and treatment of food suppliers. The Commission says Foodstuffs and Countdown dominate the sector, and avoid competing with each other too strongly, which is bad for consumers. It has made a range of recomendations including ways to make it easier for new competitors to enter the market. Kathryn speaks with Jessica Wilson Research Manager at Consumer NZ.
