\u201cNational will pursue the structural separation of Foodstuffs, subject to an independent Commerce Commission assessment, so Kiwis get a fairer deal at the checkout,\u201d Willis said.<\/p>\n
Nick Hanson, Chris Quin and David Boersen at the under-construction $170 million Foodstuffs North Island frozen and chilled distribution centre on July 8. Photo \/ Corey Fleming<\/p>\n
The proposed structure would be: <\/p>\n
\u2022 One nationwide Pak\u2019nSave group; <\/p>\n
\u2022 One separate nationwide New World and Four Square group. <\/p>\n
That would create three major nationwide grocery competitors: Pak\u2019nSave, New World\/Four Square and Woolworths.<\/p>\n
Pak\u2019nSaves, New Worlds and Four Squares throughout New Zealand are now owned by either <\/p>\n
Foodstuffs North Island;Foodstuffs South Island;Third-party investors such as private institutional investors, syndicates or commercial landlords.<\/p>\n
The landlord owns the building and site, which is then rented to a store owner-operator, who has paid for the fit-out of the building, as evidenced by new openings of the $73m New World Pt Chevalier<\/a> and New World Te Atatu<\/a> recently.<\/p>\n That store owner then pays rent to their landlord, like many other retailers.<\/p>\n National\u2019s break-up would mean the co-operative\u2019s ownership of Pak\u2019nSave and New World\/Four Square stores would need to be split.<\/p>\n The same entity would not be able to own all three brands.<\/p>\n But a study on ownership separation questioned the legality of forcing property changes.<\/p>\n In 2023, the Ministry of Business Innovation and Employment<\/a> released a cost-benefit analysis by Sense Partners on forcing a breakup or divestment of major supermarket chains.<\/p>\n That addressed private property rights and raised questions about forced real estate sales.<\/p>\n \u201cGiven the likely significance of divestment for supermarket owners, natural questions that arise include whether it is lawful or proper for Government to force such a measure.\u201d<\/p>\n That document also raised the same prospect as proposed by National: \u201cFoodstuffs rearranges Foodstuffs North Island and Foodstuffs South Island into two separate nationwide chains split mainly by banner: Foodstuffs Pak\u2019nSave vs Foodstuffs New World.\u201d<\/p>\n Top real estate agent Richard Kirke, Colliers\u2019 managing director of the agency, said today some of the properties were owned by Foodstuffs.<\/p>\n \u201cI would imagine the leases would stay in place, but the entities would change as ownership changes. But those leases would remain enforceable. <\/p>\n \u201cWhat National is trying to achieve is to lower the prices for the shopper. <\/p>\n \u201cThe revenue each supermarket would make would be reduced by increased competition. <\/p>\n \u201cThe outcome ultimately would be that, because owner-operators would not be making as much money, they may be able to afford to pay less rent.<\/p>\n \u201cIn time, you\u2019d expect the value of each supermarket to be negatively impacted because it would not be profitable as it once was. I don\u2019t think the average punter would care. <\/p>\n \u201cIn time, unless there is another occupier who could pay more, I think the rent would have to reduce because the owner-operator would not be able to afford to pay as much,\u201d Kirke said.<\/p>\n Syndicates that New Zealanders invest in own Foodstuffs\u2019 supermarkets, he said.<\/p>\n So such a policy change could have a detrimental impact on that group, he said, potentially reducing the value of their properties.<\/p>\n Kirke was one of the two agents who last Friday brokered<\/a> the $308m sale of a 49% stake in Westfield Albany from Singapore\u2019s GIC to the family interests of Tim Glasson of Christchurch.<\/p>\n Bruce Whillians, managing director of commercial agency Whillians, said the Foodstuffs co-operative owned most of its own properties \u201cand that\u2019s always been its model\u201d.<\/p>\n Supermarkets were widely sought after by investors because they were unaffected by economic up and downturns or pandemics.<\/p>\n NZX-listed Investore Property owns 34 Woolworths<\/a> in New Zealand.<\/p>\n But the National Party has no planned changes to Woolworths.<\/p>\nAUCKLAND, NEW ZEALAND – JUNE 29: Scott Jackson, the new owner\/operator of New World Te Atatu on June 29, 2026 in Auckland, New Zealand. Herald photograph by Jason Dorday<\/p>\n
Matt Mullins is the owner-operator of New World Pt Chevalier. Photo \/ Jason Dorday<\/p>\n
Pak’nSave would be forced to separate from New World.<\/p>\n
Richard Kirke, Colliers International<\/p>\n
New World Victoria Park when it caught fire last winter. Photo \/ Dean Purcell<\/p>\n