2 Apr 2025

Does New Zealand's geography cause higher supermarket prices?

From Nights, 10:18 pm on 2 April 2025

The government is determined to bring the price of our groceries down with Finance Minister Nicola Willis saying significant action may be required to foster genuine competition.

It's not the first time a government has tried to make the weekly shop easier on the pocket but so far the status quo has remained.

One issue cited in the Commerce Commission's market study on the sector was New Zealand's geography and isolation which the study said affected the ability of new entrants to be efficient.

Associate Professor Sergio Biggemann from the Department of Marketing, Otago Business School, at the University of Otago says while geography plays a part there are many more factors that contribute to our higher prices.

People shop at a Woolworths supermarket in Sydney.

People shop at a Woolworths supermarket in Sydney. Photo: PETER PARKS / AFP