New Zealand forces supermarkets to allow competitors access to their wholesale units

The change comes as New Zealanders grapple with inflation of 7.3%, the highest level in three decades, and follows other government moves to improve competition in a sector dominated by just two companies.

Foodstuffs, a New Zealand-owned retail cooperative, and Countdown, part of Australia’s Woolworths Ltd, did not immediately respond to a request for comment.

The new rules, which have not yet been passed into law, require branches of wholesale supermarkets to sell groceries to competing retailers at competitive prices set by the regulator, unless they give up voluntarily.

The government hopes this will mean that other retailers, such as neighborhood stores, can expand and supply products at a lower cost.

“This action will improve competition and competition will improve prices,” David Clark, the Secretary of Commerce and Consumer Affairs, told a news conference.

Other measures taken by the government last year include restrictions on stockpiling of land by supermarkets and the introduction of a regulator.