Government announces supermarkets as second market study
Published: 17 November 2020
Supermarkets will be the subject of the second market study, the Government has today confirmed.
The Commerce Commission will conduct the study, which is aimed at determining whether there are factors that may be impeding competition in the retail grocery sector. The Commission has 12 months to complete the study, and is required to produce its final report by 23 November 2021.
The Government will then consider the report and any recommendations before deciding on next steps.
Scope of study
The market study will look at factors including:
- the structure of the grocery industry at the wholesale and retail levels
- the nature of competition at the wholesale and retail levels of the grocery industry
- the pricing practices of the major grocery retailers
- the grocery procurement practices of the major grocery retailers
- the price, quality, product range and service offerings for retail customers.
The Commerce Commission was given the power to undertake competition (market) studies in 2018 as a result of changes to the Commerce Act. The first market study saw the Commission examine competition in the retail fuel sector. The Government passed the Fuel Industry Act on 12 August 2020 as a first step to implementing the changes recommended by the Commission as a result of the study.
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