Latest news with #FoodstuffsNorthIsland
Scoop
22-07-2025
- Business
- Scoop
Retail Confidence Rises Despite Economic Pressures
Retailers across New Zealand are showing renewed confidence in the face of ongoing economic challenges, according to the latest Retail Radar report from Retail NZ. The quarterly survey, covering April-June 2025, reveals that 69% of retailers are confident or very confident their business will survive the next 12 months — a notable increase from 57% in the same quarter last year. This aligns with the findings of the recent NZIER Quarterly Survey of Business Opinion for Q2 2025 that found retailers were more optimistic about the economic outlook than other sectors. Retailers were 13% more likely to expect better general economic conditions over the coming months than the general business population. The optimism recorded in Retail Radar comes despite 62% of retailers failing to meet their sales targets in the past quarter. However, expectations are improving, with 60% anticipating they will meet or exceed targets in the next three months — up from 49% in Q1 2025 (January-March) and 32% in the April-June period last year. 'Retailers are resilient,' says Retail NZ Chief Executive Carolyn Young. 'While the economic environment remains uncertain, the sector is showing signs of cautious optimism, supported by inflation at 2.7%, steady OCR at 3.25%, and a slight uptick in card transaction spend.' Recent StatsNZ data shows retail sales volumes rose 0.8% compared to the last quarter of 2024, though growth remains modest at 0.65% year-on-year, and still below 2023 levels. Retailers continue to grapple with a range of issues, including: cost of living pressures insurance lease and rent increases Freight costs 'In spite of the confidence expressed by Retail Radar respondents, we are continuing to see retailers across the country shutting their doors due to increased pressure on cost of living, lease and rates increases,' Ms Young says. Following a recent trial by Foodstuffs North Island and guidance from the Office of the Privacy Commissioner, Retail NZ also asked members if they were likely to use Facial Recognition Technology (FRT) to combat retail crime. Only a small number of larger retailers are considering adopting FRT. The main barriers raised by respondents about use of FRT include: High implementation and maintenance costs (69%) Potential public backlash (36%) Need for more evidence of effectiveness (32%). 'FRT may be a useful tool for some, but it's not a one-size-fits-all solution,' says Retail NZ Chief Executive Carolyn Young. 'We know that FRT has proven to be effective in identifying recidivous offenders in-store. However, it requires a considerable commitment to implement, train and maintain FRT in-store.'
Newsroom
15-07-2025
- Business
- Newsroom
Supermarkets impervious to bad headlines and court fines
Opinion: If you have the impression the big supermarket chains have been facing a lot of court cases over allegations of abusing competition, heavying suppliers or exploiting customers, then you're not wrong. The Commerce Commission reveals it will be filing civil proceedings against Foodstuffs North Island and its wholesale arm, Gilmours, for alleged cartel conduct. Essentially, it alleges they pressured a big food producer to cancel a deal to supply direct to a hospitality customer, and instead transact via the Foodstuffs firms. We've been hearing these sorts of allegations for more than 10 years now. In 2014, Shane Jones (who was then a Labour MP) sparked an inquiry by claiming in Parliament that New Zealand suppliers were being 'blackmailed' into making payments to the Australian-owned chain Countdown, to ensure their products continued to be stocked. He called it a 'shakedown' and an example of the ruthless 'dingo culture' of Australian corporations. Back then, I remember talking to big Kiwi food suppliers. Really big companies. Companies whose brands are household names. One senior manager at a food multinational told me the supermarket brought in top Australian managers to its south Auckland HQ, to review suppliers' terms. 'Suddenly you get invited into a windowless room at Favona Rd and you get ambushed.' But they were too scared to speak out publicly – 'people are nervous about getting that phone call inviting them to that windowless room' – and that's only slowly starting to change. Today, the focus is on both Woolworths (as Countdown is now branded) and perhaps more so, the New Zealand cooperatives that make up Foodstuffs. It started with the Commerce Commission market study of grocery competition. And from July 2021, one after another, Kiwi suppliers mustered the courage to speak publicly to Newsroom. First Sarah Hedger, the founder of a the small Yum Granola breakfast cereal maker in Nelson. Then Orchard Gold, Bloomsberry Chocolate and even the big fishing company Sealord. Yet just last week, the commission issued a warning to Foodstuffs North Island for its treatment of another supplier, arbitrarily obstructing and delaying the business from raising its wholesale prices. The commission is already prosecuting Woolworths for allegedly misleading consumers about the price they'd pay for groceries, and fake 'specials'. The owners of Foodstuff's Pak'nSave supermarkets in Mill St and Silverdale have pleaded guilty to similar charges. Earlier, Pak'nSave Mangere was fined $78,000 for promotional price discrepancies. The commission has taken action against both supermarket chains over restrictive land covenants. Last year, the High Court penalised Foodstuffs $3.25m for lodging anti-competitive land covenants with the purpose of blocking competitors. There are more ongoing Commerce Commission investigations, that may yet result in criminal charges or civil proceedings. And it's not just the commission that has unscrupulous supermarket behaviour in its crosshairs. Newsroom revealed in 2023 that police had won a judicial order forcing grocery giants Foodstuffs and Woolworths to change the way they do business. It was the result of a test case against Silverstream New World for illegal discounting of alcohol. That was followed last year by the Alcohol Regulation and Licensing Authority ordering more than 30 New World supermarkets' off-licences to be suspended, after a wider police case of illegal discounting. The question has to be, are these bad corporate citizens? Certainly, senior politicians in both National and Labour seem to have drawn that conclusion. Finance Minister Nicola Willis, like her Labour predecessors, has spoken loudly and firmly about her determination to crack down on supermarkets in order to rein in rising food prices. Foodstuffs managing director Chris Quin says his cooperatives are very focused on managing down prices. He claims a basket of food from Pak'nSave compares favourably in price with a basket from Aldi in Australia. He claims Foodstuffs has surveyed New Zealanders and most of them understand that rising prices are driving the continuing food inflation. 'Facts do matter a little bit. I know they can appear pretty complicated, but keeping it simple like that matters,' he told broadcaster Mike Hosking a month ago. 'But none of that makes it easier in terms of households meeting budget.' In response to the latest court case, spokesperson Stefan Herrick says Foodstuffs North Island and its stores are committed to complying with all their regulatory obligations, and cooperated fully with the Commerce Commission throughout its investigation. 'We strongly deny any unlawful conduct,' he says. 'As this matter will be before the court in due course, it would not be appropriate to comment further at this time.' Jon Duffy, the Consumer NZ chief executive, welcomes the Commerce Commission cases, which he says are difficult for regulators to detect. 'Complainants reporting this type of conduct often face the risk of retribution. When you are dealing with businesses on the scale of supermarkets, targeted retribution could wipe out a supplier's business.' Consumer NZ, too, reports heading off-the-record comments for years, about how supermarkets conduct their business and treat suppliers. 'We understand there is a significant number of other active cases on the commission's books relating to a range of supermarket conduct under the Commerce Act, the Grocery Industry Competition Act and the Fair Trading Act.' Duffy believes the series of cases, with warnings and guilty pleas, could indicate a culture issue within the Foodstuffs North Island cooperative – a belief it can act without consequence. It's got to the extent that last week, Willis said she planned to meet Fonterra chief executive Miles Hurrell to discuss how to get affordable cheese, milk and butter to New Zealanders. Willis said she was interested in how much of the recent price increases were due to Fonterra's wholesale prices, and how much was about a lack of supermarket competition. It's true that last month, Stats NZ figures showed the price of milk was up 15 percent, cheese was up more than 30 percent, and a 500g block of butter had risen 51 percent – and that's not entirely down to rising global dairy prices. This is an exemplar of populist retail politics – and her own coalition partner David Seymour was quick to differentiate Act's position. At the party conference this weekend, he acknowledged concern at people 'driving across the country just to buy butter at Costco in Auckland', but warned that Willis' proposal to break up the private grocery firms would scare off international investment. Jon Duffy acknowledges the politics involved. 'Yes, politicians have got headlines calling out the behaviour of the supermarkets in respect of consumers and suppliers,' he says, 'but that doesn't mean there isn't a significant issue to be addressed'. 'There is a clear difference in robust dealings between commercial actors and what could amount to anti-competitive behaviour. What's been alleged in the proceedings announced today is reminiscent of the excesses of the robber barons of the early 20th century which led to the establishment of competition law in the first place.' What's clear is that 10 years of increasingly robust Commerce Commission action has thus far failed to solve the problem. Chair Dr John Small says the commission does not tolerate this kind of behaviour and will not hesitate to take court action, where appropriate. What's also clear, after 10 years, is the supermarkets seem able to absorb the bad publicity, convictions and fines without it seriously hurting their businesses. They seem impervious. And that goes to the heart of the problem: no matter what Kiwi suppliers and consumers may think of the supermarkets' behaviour, they have few other choices about where to buy and sell their groceries.
1News
15-07-2025
- Business
- 1News
Proceedings filed against major grocers for alleged cartel conduct
The Commerce Commission will be filing legal proceedings against Foodstuffs North Island and Gilmours over allegations of cartel conduct. The Commission said it would "shortly" file civil proceedings against the two companies for alleged breaches of the Commerce Act and the Grocery Industry Competition Act. Gilmours is owned by Foodstuffs North Island. Foodstuffs North Island has denied any unlawful conduct. It followed an investigation by the Commission into agreements the companies entered with a national grocery supplier regarding the supply of products to a hospitality customer. The supplier and customer both had "considerable volumes of business" with Foodstuffs North Island and Gilmours. ADVERTISEMENT "When FSNI/Gilmours discovered the supplier and customer had established a direct trading relationship, they persuaded the supplier to re-route that business through them," the Commerce Commission said. Commerce Commission chairman Dr John Small said the Commission believed the companies had engaged in cartel conduct and breached the Commerce Act. Cartel conduct is when two or more businesses agree not to compete with each other. This could include price fixing, allocating customers, rigging bids or restricting the output of goods and services. 'We take allegations of cartel conduct very seriously. Cartel conduct harms consumers through higher prices or reduced quality, and it harms other businesses that are trying to compete fairly,' Small said. 'In this instance, the supplier wanted to provide a competitive supply channel, but this was stopped by the agreement with FSNI and Gilmours. 'We do not tolerate this kind of behaviour and will not hesitate to take court action, where appropriate." The morning's headlines in 90 seconds, including Trump's deadline for Russia, legal action against a supermarket giant, and an unusual marathon record. (Source: Breakfast) ADVERTISEMENT The commission also believed the companies obstructed the supplier's ability to sell groceries to the customer in question and did not deal with the supplier in good faith, which breached GICA. 'The Grocery Supply Code was introduced to address the power imbalance between the major supermarkets and their suppliers,' Grocery Commissioner Pierre van Heerden said. 'The major supermarkets are the largest customers for most grocery suppliers. This creates a reluctance for suppliers to call out bad behaviour or push back on the supermarkets for fear of damaging relationships or losing access to supermarket shelves. 'The Commission is acutely aware of the risk suppliers may face coming forward and has ways to protect their identity and business. We have anonymous reporting tools for cartels and GICA and encourage anyone concerned to use these ways of contacting us." Following the Commission's statement this morning, a Foodstuffs North Island spokesperson said: "Foodstuffs North Island and our stores are committed to complying with all our regulatory obligations, and we co-operated fully with the Commerce Commission throughout their investigation of this matter." The business "strongly" denied any unlawful conduct. "As this matter will be before the Court in due course, it would not be appropriate to comment further at this time.' ADVERTISEMENT Foodstuffs North Island was issued a warning earlier this month for the treatment of a supplier that likely breached the Grocery Industry Competition Act 2023.
Scoop
14-07-2025
- Business
- Scoop
Key To Cheaper Groceries Is More Competition
Reacting to news of the Commerce Commission filing charges against Foodstuffs North Island, ACT Leader David Seymour is encouraging a fast-track approval process to encourage more competition in New Zealand's supermarket sector. 'The single biggest impact we can have on lowering prices at the checkout is encouraging competition. If Kiwis want cheaper prices, we need to convince the likes of Walmart to set up shop here in New Zealand,' says ACT Leader David Seymour. 'I can't comment on the substance of the Commerce Commission's claims because the matter is before the courts. What I can say is that until we address the competition problem we won't see lower prices, no matter how many different commissioners there are watching over the sector. 'For more of the right stuff to show up in the right quantity in the right place at the right time, then we need more stores, state-of-the-art supply chains, and new distribution centres to be built. That requires investment, from people inside New Zealand and outside. 'ACT would introduce a fast-track approval process for grocery development. This one-stop shop would streamline rezoning, consenting, and investment approvals, making it easier and faster to build new supermarkets at scale. 'A new entrant or smaller grocer could get approval for a full rollout of stores and warehouses within months, not years. For comparison, it took Costco three years and $100 million just to open one store in New Zealand. 'The fast-track would allow any applicant building at least 10 stores (or equivalent floor area) to use the fast-track. For five years, it would be limited to new entrants or smaller players, giving them a head start before the major incumbents become eligible. 'Projects should not be blocked, scaled back, or burdened with conditions just because they're outside existing retail centres or might compete with dominant supermarket chains. 'Every approved development could also be mixed-use. That means a supermarket could have apartments or other commercial activities above it, making projects more attractive to investors who want to diversify and aren't sure the New Zealand groceries market is big enough to open a supermarket on its own. 'If we want the Walmarts, Aldis and Tescos of the world to come here, we need to give them a reason to set up shop. This fast-track process sends a message to them that New Zealand welcomes competition and that they won't be tied up in red tape by coming here. 'These are practical steps that can be taken to save New Zealanders money. If you're looking for finger pointing, don't look here. We are interested in problem solving. 'We want lower prices, so we need more competition, that means removing the barriers that stop new players from entering the market.'
Otago Daily Times
09-07-2025
- Business
- Otago Daily Times
New World fire: 180 roles to be disestablished
The massive blaze at the supermarket took more than 10 hours to put out and left the building badly damaged. Photo: RNZ Foodstuffs has confirmed 180 roles at Victoria Park's New World supermarket in Auckland will be disestablished after a fire three weeks ago. However it said the timeframe for when redundancy would take effect has been extended to provide more time to support each team member finding a new role. First Union told RNZ's Checkpoint programme today employees will now be paid up until August 4 - longer than they expected. Eighty jobs have been earmarked at the Pt Chevalier New World and another 100 jobs were available through 14 Foodstuffs North Island stores via a "jobs expo" the company had organised. If the affected staff were employed by another store they would still receive their redundancy, First Union said. The union believed it was a "good outcome". The massive blaze on June 17 took more than 10 hours to put out and left the building badly damaged with a collapsed ceiling. Foodstuffs North Island chief executive Chris Quin earlier said the damage was extensive and the store was expected to be out of operation for approximately two years while significant rebuild work takes place. He said the new Pt Chevalier store would be the closest New World option for many affected Victoria Park shoppers, especially those in surrounding suburbs. "Since the fire, we've heard from so many locals who told us how much they'll miss Victoria Park. Some even described it as their 'extended pantry'," he said. "We know how important it is to have access to a full-service grocery store in the area, and bringing forward the opening of New World Pt Chevalier is one way we can help meet that need."
