Pursue a split of Foodstuffs into rival PAK'nSAVE and New World chains
Pitched as a fairer deal at the checkout for shoppers by creating a third major nationwide supermarket chain.
π National: More grocery competition, September 2026 β
What it does
- Amends the Grocery Industry Competition Act in National's first 100 days so the Commerce Commission can develop and assess a plan to separate Foodstuffs, with a recommendation due within six months.
- The proposed structure has New World and Four Square as one nationwide chain and PAK'nSAVE as another, alongside Woolworths, giving three major chains.
- If the Commission recommends separation, National says it would legislate to make it happen. National says it is seeking an explicit mandate from voters rather than acting this term.
- National says no PAK'nSAVE, New World or Four Square owner-operator would be forced to sell or rebrand.
- National cites independent modelling by Sense Partners estimating grocery prices about 3.5 percent lower than otherwise a year after separation, and gains of $200 to $1,320 a year per household by full rollout. RNZ reported the modellers called their work indicative rather than definitive and flagged possible legal and implementation hurdles.
The debate
Nicola Willis called the plan a bold and unprecedented step that puts the shopper first. Labour leader Chris Hipkins dismissed it, saying New Zealanders could not eat a review. Foodstuffs said the proposal raised significant issues that deserve careful consideration, and a preliminary peer review it commissioned from economists HoustonKemp said the modelled net benefits appeared "too good to be true". Willis said the analysis had been peer reviewed and the Commerce Commission would test the facts. ACT leader David Seymour has argued a break-up would scare away investment, while NZ First announced its own plan to break up Foodstuffs in April.
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Key milestones
National to pursue separation of Foodstuffs
Nicola Willis said a re-elected National Government would empower the Commerce Commission to assess splitting Foodstuffs into two competing nationwide chains within six months, and would legislate if the Commission recommends it.
Labour dismisses the review approach; Foodstuffs weighs the plan
RNZ reported Willis called the plan bold and unprecedented. Labour leader Chris Hipkins dismissed it, saying New Zealanders could not eat a review, and Foodstuffs said the proposal raised significant issues it would consider carefully.
Foodstuffs-commissioned review questions the modelling
A preliminary peer review by economists HoustonKemp, commissioned by Foodstuffs, said the net benefits in the Sense Partners modelling appeared too good to be true and rested on assumptions untested with the industry. Willis said economists can differ and the Commerce Commission would test the facts.
Sources
- National: More grocery competition (policy page) β
- National to pursue separation of Foodstuffs (National Party, 16 Sep 2026) β
- National vows to 'pursue' break up of supermarket giant Foodstuffs (RNZ, 16 Sep 2026) β
- Foodstuffs-commissioned review criticises break-up modelling (1News, 4 Oct 2026) β