Photo / David White, NZ Listener
A consumer watchdog says there is little doubt New Zealand's supermarket duopoly is behind grocery prices rising faster in New Zealand than most major industrialised countries.
Consumer New Zealand chief executive Sue Chetwin said: "It does confirm that the cosy duopoly does work to keep prices high, and there really isn't as much competition as there should be."
Foodstuffs managing director Tony Carter said the market was "extremely competitive".
Are NZ supermarkets guilty of artificially keeping prices high? Here is the latest selection of Your Views:
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162comments
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Yes - I believe they do.H (New Zealand)10:04AM Wednesday, 11 Nov 2009
As an example, once people stopped buying cheese when it got so expensive the price came down (much like petrol).
The prices also vary depending on where you live.
I wonder if the supermarkets could or would tell the public the percentage mark up on food items. It should be standard across all food items - enough to ensure a profit without profiteering.
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It is the same with almost every industry in NZ - operated by cartels.Jason (Auckland City)10:04AM Wednesday, 11 Nov 2009
Look at our power companies, supermarkets, mobile providers, internet providers.
All industries have only a couple of players who decide the prices amongst themselves.
Government too weak to intervene, leaving us poor fools getting ripped off.
Just take a look at the increases in all of our bills in the last couple of years.
Probably 10-20% increases. If only my wage increase at the same rate increased at all!
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NZ super market is Super ExtortionistJimmy (New Zealand)10:04AM Wednesday, 11 Nov 2009
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Guilty as charged.Ozymandias (Auckland City)10:39AM Wednesday, 11 Nov 2009
Supermarkets use their massive buying power to wring the maximum possible discounts from their suppliers, most who are already struggling running on tiny margins but none of the savings made are passed on to the consumer or reflected in the selling price.
Sadly Supermarkets are just players in a bigger game - Oil being the biggest con of them all.
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Yes, but they are there to make money. I would too if I owned one, and if people were prepared to pay the price.Deal to Crims (Rotorua)10:39AM Wednesday, 11 Nov 2009
The principle of pricing states that a seller should charge the highest price the market is prepared to pay.
It would be dumb for a business to say, gee I could earn $20M this year, but I will be happy with $5m instead. Why would shareholders invest in that company?
The real problem is that there is insufficient compttiion to keep prices down. Even if you change supermarkets it is likely to be owned by the same group.
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