New Zealand’s grocery industry has been given three years to fix competition issues or face tougher intervention, including the possibility of being forced to divest some stores to allow a new entrant.
Releasing the results of a study into the industry on Tuesday, the Commerce Commission said supermarket profits and prices are too high, and it made a raft of recommendations to improve competition in a sector dominated by two main players. The government has received the report and needs to make its own decisions on what to implement. The Commission is urging a review after three years to assess progress.
