Effective competition in the market will see grocery retailers compete to provide the consumers with quality and a range of products at the best prices that satisfy and meet the clients’ needs. New entrants should focus on having a convenient one-stop shopping capability for their clients to compete with Woolworths NZ and Foodstuffs to improve competition in the grocery market. However, these new entrants should be aware of the challenges expected, which include difficulties in getting reliable suppliers for grocery products that are competitively priced and difficulties in finding areas for store development. Therefore, the grocery retailer sector in New Zealand has great potential for new entrants. Leading retailers such as Foodstuffs and Woolworths operate as a duopoly. The study’s main outcome was that competition has not been effective among grocery retailers due to the prevalence of major grocery retailers. The report indicates that over $22 billion was spent in 2021 purchasing groceries from supermarkets. From the report, it is evident that groceries are a vital part of household consumption.

The report represents New Zealand’s study of the retail grocery sector.