Would splitting Pak'nSave and New World make food cheaper?

National would look at splitting Pak'nSave and New World into separate companies to lower grocery prices.

The idea, set out on 16 September 2026, is conditional. The Commerce Commission, the watchdog that checks businesses compete fairly, would run a six-month review to test if shoppers would be better off. National says it would pass a law to force the split if the review agreed. RNZ

If the split went ahead, New Zealand would have three big supermarket chains across the country, with Pak'nSave and New World/Four Square as separate chains. Think of it as two shops with the same owner becoming two shops with different owners, competing for customers. National has made the break-up part of its 2026 election pitch. It says the split would increase competition. Farmers Weekly

Labour does not back the idea. It called it little more than another taxpayer-funded review. Foodstuffs opposes it. It said the plan would have significant implications for its more than 500 locally owned stores. Some smaller operators support it. Night 'n Day general manager Matthew Lane said the break-up was long overdue.

Shoppers are split. RNZ spoke to shoppers at Pak'nSave in Royal Oak. Some wanted action to lower prices. Others doubted it would help.

Woolworths and Foodstuffs dominate supermarkets in New Zealand. No new national chain has started up. In November 2024, the Commerce Commission said no to Foodstuffs' request to join parts of its business, because of worries about competition.

In August 2025 National put out a release called 'Express lane for new supermarkets'. It said it had removed barriers to help new supermarkets start, while also talking about breaking up Foodstuffs and/or Woolworths because of their strong hold. National Party

The broader context here is about process as well as prices. The plan puts the Commerce Commission between National and a break-up law. That lowers legal risk while keeping pressure on the owners during the election. It also changes the question to whether the current ownership stops real competition, something the commission has already looked at. Voters will decide if a conditional review is careful or slow, and the industry will decide if the threat of a law is believable.