National proposes splitting Foodstuffs into two competing grocery chains pending regulator sign-off

National leader Christopher Luxon and finance spokeswoman Nicola Willis announced a plan to structurally separate Foodstuffs, the co-operative that operates New World, PAK’nSAVE and Four Square across New Zealand. The proposal would create two truly independent nationwide grocery chains - one combining New World and Four Square, the other consisting of PAK’nSAVE - to spur tougher competition on price, specials and service.

Implementation hinges on the Commerce Commission’s assessment, which one outlet says it will enable by amending the Grocery Industry Competition Act early in its term. The commission would have six months to decide whether the split would benefit consumers, and National would only act if it receives a positive recommendation. The party stresses that no owners would be forced to sell or rebrand, and it would not pursue similar break-ups in other sectors. The announcement comes as Labour also rolls out a price-gouging ban aimed at large supermarkets.