NZ's supermarket competition needs local brands, not foreign

New Zealand's supermarket sector is facing big challenges. Senior Government minister Nicola Willis is taking action. She is warning the major supermarket chains, Foodstuffs and Woolworths, about their pricing practices. Willis wants to ensure that competing companies can access products fairly. The Commerce Commission recently released a report showing that the average household spends about $214 a week on groceries. This amount makes up around 13% of their total weekly budget. The concentrated nature of the supermarket sector has drawn increased attention from the government. Willis has suggested that she may offer special support to a foreign brand that enters the market. However, experts caution against relying solely on international companies to improve competition. For example, a brand like Aldi might take five years or more to establish a presence in New Zealand. This uncertainty makes it a risky bet for the country. Local competition may be a more effective solution.