Foodland supermarkets 'overpriced', says Morrice

Foodland's New Zealand supermarkets are "overpriced", says The Warehouse chief executive Ian Morrice.

Analysts have suggested The Warehouse could look to buy the Australian company's New Zealand assets - the Countdown, Foodtown and Woolworths chains - instead of developing its own grocery offering. A hostile bid for Foodland by Australian grocery wholesaler Metcash saw Foodland adopt Metcash's plan to spin off the assets.

But Morrice said the price expectations for the New Zealand chains were "unrealistic", particularly after grocery wholesaler Metcash increased its offer for Foodland last week.

"There's quite a gap between what we perceive that business would be worth and what everyone believes the price will be."