New Zealand is set to introduce legislation in November 2025 designed to significantly expedite the approval process for new supermarkets. This strategic move by the government aims to dismantle existing regulatory barriers, foster greater competition within the grocery sector, and ultimately drive down prices for consumers.
Finance Minister Nicola Willis announced that the proposed legislation will create an "express lane" for supermarket developments, streamlining the often lengthy and complex procedures that have historically hindered new entrants. The current market is largely dominated by two major players, Foodstuffs NZ and Australia's Woolworths, which together hold approximately 90% of the market share. This duopoly structure has been a focal point for concerns regarding grocery affordability and choice.
The government's initiative is a direct response to feedback highlighting widespread frustration among potential supermarket operators regarding restrictive zoning, slow consenting processes, and other regulatory hurdles. These challenges have made it exceedingly difficult for new businesses to establish a presence or expand within the New Zealand grocery landscape.
The new legislation intends to address these issues by amending the Fast-Track Approvals Act, ensuring that new supermarket projects contributing to regional or national competition are eligible for accelerated consenting. It is anticipated that this process, which currently averages 18 months and can cost up to $1 million for resource consent, could be reduced to under a year. Further measures to facilitate market entry include the establishment of a single, streamlined building consent authority for supermarket developments nationwide, replacing the current system of 68 separate authorities. Additionally, changes to the Building Act will simplify the use of pre-approved "MultiProof" building designs, potentially cutting building consent timeframes in half.
The government is also clarifying foreign investment pathways through amendments to the Overseas Investment Act and strengthening the Commerce Act to combat predatory pricing. While some have advocated for a structural breakup of the existing major players, the government plans to conduct a thorough cost-benefit analysis before considering such a significant intervention. The focus remains on creating an environment where new competitors can thrive.
The New Zealand Initiative, a business think tank, has been a proponent of such reforms, having previously drafted a Fast-track Supermarket Entry and Expansion Omnibus Bill in May 2025 that proposed similar streamlining of planning, consenting, and investment processes. This proactive approach aims to inject much-needed dynamism into the grocery sector. By easing the path for new entrants, the government is signaling its commitment to a more competitive market, which is expected to translate into better deals and a wider selection for New Zealand shoppers. The legislation is slated for passage by the end of 2025, marking a significant step towards addressing long-standing concerns about grocery prices and market concentration.