Fast Tracking Supermarket Expansion in New Zealand

New Zealand is preparing to enact legislation in November aimed at accelerating the approval process for new supermarkets, as part of a strategy to heighten competition and drive down costs. The proposed legislation is led by Finance Minister Nicola Willis of the center-right government.

Minister Willis emphasized the need for a streamlined and simplified entry process for new supermarkets, describing the current situation as being hindered by strict regulations, which prevent new competitors from challenging the dominance of established players like Foodstuffs NZ and Australia's Woolworths.

While there's been some public suggestion to break up the existing duopoly, Willis mentioned that such a move would be a significant undertaking with inherent risks. Instead, the government plans to simplify processes and adjust foreign investment regulations. Companies might face prosecution if found abusing market power. U.S. retailer Costco has shown support for these initiatives, keen on expanding its presence in the region.

(With inputs from agencies.)