Labour pledges supermarket reforms to support independent grocers and lower food costs

Labour has announced a major policy package targeting New Zealand’s supermarket duopoly, promising to make it easier for independent grocers to compete with industry giants Woolworths and Foodstuffs. As reported by Waatea News on 20 September 2026, the party plans to introduce immediate structural changes to the grocery market if successful in the upcoming election. Under the proposal, Labour would require the two major grocery groups to operate their wholesale supply businesses independently from their retail stores. This shift is intended to guarantee that independent grocers can purchase stock from wholesalers of their choice on fair terms. Commerce and Consumer Affairs spokesperson Arena Williams says the current market dominance of the two main players creates significant barriers for smaller operators trying to enter or expand in the sector. Labour leader Chris Hipkins identified grocery prices and the broader cost of living as central pillars of the party’s campaign. The policy aims to put downward pressure on household food bills by fostering stronger competition. The package also includes plans to remove anti-competitive restraints on smaller grocers, ban "junk fees" charged to suppliers, and increase transparency regarding data arrangements and rebates. This announcement follows Labour’s recent proposal to make excessive price gouging by companies with significant market power illegal. That plan would grant the Commerce Commission new powers to investigate pricing for essential goods. According to Waatea News, Labour argues that these structural changes are necessary because previous government attempts to increase competition have been too slow to deliver results for Aotearoa consumers. With the cost of living serving as a key battleground for Election 2026, the party is positioning these reforms as a direct solution for families struggling with high food costs.