The Commerce Commission has today published its final report on its market study into the retail grocery sector.
Foodstuffs North Island (FSNI) Chief Executive Chris Quin says this is an important moment for the industry and for New Zealand consumers.
“We acknowledge that competition can work better for New Zealand customers. As a result, we accept that the sector does need to change and we are committed to our role in doing that.
“We need time to now consider the final report in detail, but from our initial review we are committed to working with the Government in supporting the implementation of the recommendations in the final report.
“We’ve been fully engaged in the market study process from the outset over 15 months ago, we’ve listened, and we’ve committed to an action plan that will meaningfully improve outcomes for customers and address the proven issues raised through the market study.
“Our action plan includes a commitment to simplifying our pricing and promotional practices, working with suppliers and the Government to develop a compulsory code of conduct, and ending the use of restrictive land covenants and exclusivity provisions in leases.
“Our action plan will remove the genuine barriers to market entry that are within our control, and deliver better competition and value for New Zealanders. We welcome the fact that the commitments in our action plan are reflected in the Commission’s final report.
“We will now work with the Government on implementation of the recommendations set out in the final report today.
“We’ve accepted the clear challenge to do better for New Zealand customers and meaningful change is happening as a result of this market study.
“We recognise that the recommendations in the final report require us to be held accountable for improving value for consumers, and we accept that challenge.
“Work to implement the recommendations in the final report is a priority for us and has already started.
“We’ve been clear throughout this process that FSNI’s strategy is to become one of the most customer driven retailers in the world. This process has shown that we need to do more and we will continue to focus on improving value for customers, investing in innovation and delivering on our customer promises.”