31 May 2022

Supermarket duopoly: Expert sceptical groceries will be cheaper

From Checkpoint, 6:06 pm on 31 May 2022

A business expert is skeptical about whether government efforts to bust up the supermarket duopoly with make groceries cheaper.

In changes announced yesterday the two main chains will be forced to offer wholesale supply to competitors by the end of the year, if they don't do it voluntarily.

An industry watchdog is being set up with annual reviews of competition and a mandatory code of conduct for the treatment of suppliers.

The government also tightening up regulations to stop landbanking and clauses that restrict competing stores setting up shop.

Will it make any difference to the consumer? Associate Professor Sergio Biggemann from the Department of Marketing at Otago Business School talks to Lisa Owen.