Richard Meade: NZ and Australia face a complicated puzzle when it comes to supermarket prices...

This may be as good as it gets: NZ and Australia face a complicated puzzle when it comes to supermarket prices

With ongoing cost of living pressures, the Australian and New Zealand supermarket sectors are attracting renewed political attention on both sides of the Tasman.

Allegations of price gouging have become a political issue in the Australian federal election. At the same time, the New Zealand government has announced that “all options” are on the table to address a lack of competition in the sector – including possible breakup of the existing players.

Professor Aaron Gilbert: Want NZ banking to be more competitive? Then make it easier to switch banks

The Commerce Commission’s banking market study has concluded more competition is required to reduce the profits of the big four banks. But the report suggests increasing competition may be ineffective unless customers are easily able and willing to switch between banks.

In 2023, the four Australian banks operating in New Zealand made approximately NZ$7.1 billion in profit, representing $1,400 per person. Despite many customers struggling due to increasing mortgage costs, the banks’ profits rose.

Lisa Asher, Catherine Sutton-Brady: Supermarket concentration benefits stores, not shoppers.

Supermarket concentration benefits stores, not shoppers. It’s time to split Foodstuffs – not make it stronger

The proposed merger of Foodstuffs North Island and Foodstuffs South Island raises the prospect of even less choice for New Zealanders in what is an already heavily concentrated market. But will regulators prevent it from happening?

New Zealand currently has just three major supermarket entities: the two Foodstuffs cooperatives (member-owned companies) and Australian-owned Woolworths. These three control 85% of the grocery market and almost 100% of the supermarket sector.