Election 2026: Labour to campaign on new rules for big supermarkets in effort to reduce grocery prices

The Labour Party is vowing to crack down on supermarket prices by introducing new requirements for how Foodstuffs and Woolworths run their wholesale supply lines. If elected, the party would also free smaller grocers such as Four Square from any restraints of trade and give New Zealand grocers the right to buy their stock from any wholesaler they choose. Labour previously announced it would outlaw price-gouging if elected in November. That policy would make it illegal for large companies with significant market power to charge excessive prices for essential goods and services, or to pay unfairly low prices to suppliers.“This election is about the cost of living and who will take real action to get it under control. Families are paying too much for groceries, and Labour has a plan to bring prices down,” Labour leader Chris Hipkins said.“A Labour Government will crack down on big companies ripping you off, and we’ll take immediate action on grocery prices.”Hipkins said the “time for reviews” of the sector was over. The cost of groceries – and finding solutions to lower them via supermarket regulation – is expected to be a hot topic during the election. National has announced plans to break up Foodstuffs by carving off New World and Four Square as one nationwide chain, and Pak’nSave as another, effectively creating a third supermarket player to dilute the 82% market share held by Foodstuffs and Woolworths.Labour’s policy announced today includes:Open up the market by requiring Woolworths and Foodstuffs to run their­­ wholesale supply businesses independently from their retail stores;Guarantee Kiwi grocers the right to buy their stock from any wholesaler they choose, on fair terms;Free small grocers like Four Square operators from their restraints of trade, by voiding anti-competitive arrangements that keep their prices high;Ban junk fees charged to suppliers;Make rebate and data deals more transparent.The party’s labour, commerce and consumer affairs spokesperson Arena Williams said big supermarkets could favour their own retail stores, meaning smaller shops and independent supermarkets ended up paying more. “That makes it harder for them to compete and offer you a better deal. These changes will put money back in people’s pockets. “Our grocery plan will deliver lasting change by giving shoppers more choice and ensure fairer prices that last.”Julia Gabel is a Wellington-based political reporter. She joined the Herald in 2020 and has most recently focused on data journalism.