News
August 30, 2025
Chasing foreign supermarkets won’t lower food prices – Bruce Cotterill
OPINION: Finance Minister wants more supermarket firms operating, to help lower prices.
**Chasing foreign supermarkets won’t lower food prices – Bruce Cotterill**
The government's ambition to tackle rising food costs by attracting more international supermarket chains to our shores might be barking up the wrong tree, according to business commentator Bruce Cotterill. In a recent opinion piece, Cotterill questioned the effectiveness of simply increasing the number of players in the supermarket game as a solution to high grocery prices.
Finance Minister has repeatedly expressed a desire to see more competition in the supermarket sector, believing that it will naturally lead to lower prices for consumers. The thinking is that with more companies vying for customers, they will be forced to offer more competitive pricing, ultimately benefiting shoppers.
However, Cotterill argues that the issues impacting food prices are far more complex than just a lack of competition. He suggests that focusing solely on attracting foreign supermarkets overlooks the underlying factors contributing to the problem. These factors include supply chain complexities, rising operational costs, and the impact of global events on commodity prices.
Bringing in a new supermarket giant, Cotterill implies, doesn't automatically negate these challenges. A foreign supermarket chain would still face the same logistical hurdles, rising fuel costs, and inflationary pressures that local supermarkets are currently grappling with. They would also need to invest significantly in infrastructure, distribution networks, and marketing to establish a foothold in the market, all of which could impact their ability to offer substantially lower prices.
Furthermore, Cotterill suggests that the current supermarket landscape is already relatively efficient. He raises concerns that simply adding another competitor might only lead to a price war that ultimately benefits no one, potentially even driving smaller players out of the market and ultimately reducing consumer choice.
Instead of solely focusing on attracting foreign supermarkets, Cotterill believes that the government should explore a wider range of solutions. This could include streamlining regulations, investing in local food production, and addressing the root causes of supply chain bottlenecks. A more holistic approach, he argues, is necessary to achieve genuine and sustainable reductions in food prices for all New Zealanders. He believes the issue is far more nuanced than simply believing new entrants into the market will solve the problem.
The government's ambition to tackle rising food costs by attracting more international supermarket chains to our shores might be barking up the wrong tree, according to business commentator Bruce Cotterill. In a recent opinion piece, Cotterill questioned the effectiveness of simply increasing the number of players in the supermarket game as a solution to high grocery prices.
Finance Minister has repeatedly expressed a desire to see more competition in the supermarket sector, believing that it will naturally lead to lower prices for consumers. The thinking is that with more companies vying for customers, they will be forced to offer more competitive pricing, ultimately benefiting shoppers.
However, Cotterill argues that the issues impacting food prices are far more complex than just a lack of competition. He suggests that focusing solely on attracting foreign supermarkets overlooks the underlying factors contributing to the problem. These factors include supply chain complexities, rising operational costs, and the impact of global events on commodity prices.
Bringing in a new supermarket giant, Cotterill implies, doesn't automatically negate these challenges. A foreign supermarket chain would still face the same logistical hurdles, rising fuel costs, and inflationary pressures that local supermarkets are currently grappling with. They would also need to invest significantly in infrastructure, distribution networks, and marketing to establish a foothold in the market, all of which could impact their ability to offer substantially lower prices.
Furthermore, Cotterill suggests that the current supermarket landscape is already relatively efficient. He raises concerns that simply adding another competitor might only lead to a price war that ultimately benefits no one, potentially even driving smaller players out of the market and ultimately reducing consumer choice.
Instead of solely focusing on attracting foreign supermarkets, Cotterill believes that the government should explore a wider range of solutions. This could include streamlining regulations, investing in local food production, and addressing the root causes of supply chain bottlenecks. A more holistic approach, he argues, is necessary to achieve genuine and sustainable reductions in food prices for all New Zealanders. He believes the issue is far more nuanced than simply believing new entrants into the market will solve the problem.
Category:
Business