ComCom releases state of grocery competition report

“The reports confirm what many Kiwi shoppers are feeling at the checkout – reforms need more time to bed in to see significant improvements in the market,” Grocery Commissioner Pierre van Heerden says. 

“The major supermarkets have kept hold of over 80% of the national retail market, margins and profitability were relatively flat, and retail prices increased. There are some regional changes, particularly in Auckland, but nationally things have stayed consistent. 

“Regulatory changes are starting to bed in, with the environment becoming more enabling for the entry and expansion of other grocery retailers, which will support an increase in consumer choice,” Mr van Heerden says. 

The most significant being the introduction and refinement of the Grocery Supply Code, and the ongoing removal of restrictive land and lease covenants. These regulatory changes have made it easier for retailers competing with the major supermarkets to secure suitable land and reliable supply of grocery products. 

“While it will take time for other grocers to significantly change the industry-wide metrics, we are seeing new stores opening and several specialty grocers expanding their footprints, particularly in Auckland,” Mr van Heerden says.

“We’re seeing some new, smaller, and alternative retailers grow their range. Greengrocers and butchers are incorporating new product categories into their offerings, and stores who aren’t traditionally grocery stores have seen their sale of groceries increase significantly.

“I know many people are eager to support small and Kiwi-owned suppliers and grocery retailers and changing up your buying habits is a good way to do this. Many new retailers start with a smaller offering, but, with support from consumers, they can grow to buy from more suppliers and offer a bigger range.  

“We know the weekly shop may be the only option for some customers, but if you’re able, mixing up where you get your groceries from will help competitors grow,” Mr van Heerden.

The Commission’s scrutiny of the sector is essential so we can see where changes could be made to improve competition and ensure barriers to entry like access to land and product supply don’t re-emerge. 

Background

Annual Grocery Report

This is the third annual grocery report released under section 175 of the Grocery Industry Competition Act, meeting the Commerce Commission’s responsibilities to monitor and report on competition and efficiency in the grocery industry over time. 

Building on earlier reports, it provides an updated assessment of the state of competition, including market structure, consumer outcomes, and the impact of regulatory measures introduced since the Grocery Market Study. 

This report draws on information from regulated grocery retailers, other industry participants, and the Commission’s broader monitoring and enforcement work, and primarily covers the 2025 financial year. 

Supplier survey

The Grocery Supplier Survey is a key tool the Commerce Commission uses to understand suppliers’ experiences and perspectives in the grocery sector as part of its monitoring and regulatory role under the Grocery Industry Competition Act 2023.

Anonymous responses to our surveys have helped inform the Commission’s understanding of supplier–retailer relationships and priority issues in the grocery sector. This second iteration of the survey builds on that foundation, enabling the Commission to track trends and deepen its evidence base by comparing results from 2026 with those from 2024, which reveal a very similar picture of the challenges suppliers face.

The 2026 survey was conducted between 17 February and 20 March 2026.