With all this talk about rising costs and duopoly in NZ - and me playing with AI - it was time to ask it a pointed question.
Such as:
List all supermarkets in NZ and give a total of their stores!
Answer:
1. Major Supermarket Groups (The Duopoly)
Foodstuffs (Co-operatives)
- Four Square: ~230+ locations (Smaller-format, community grocery stores).
- New World: 148 locations (Full-service, premium supermarkets).
- PAK'nSAVE: 59 locations (Large discount warehouse-style supermarkets).
Woolworths New Zealand (Subsidiary of Woolworths Group Australia)
- Woolworths (formerly Countdown): ~191 locations (Full-service nationwide supermarkets).
- FreshChoice & SuperValue: ~70+ locations (Franchised local supermarkets, with SuperValue stores actively transitioning into the FreshChoice brand).
2. General Retailers & Wholesale Clubs
- The Warehouse: ~89 locationsWhile primarily a department retailer, many stores sell grocery items, and several "Warehouse Extra" hypermarket locations offer full supermarket ranges.
- Costco Wholesale: 1 locationA massive bulk-buy membership warehouse based in Westgate, Auckland.
- Gilmours / Trents: ~17 locationsFoodstuffs-owned wholesale cash-and-carry supermarkets catering to trade and commercial buyers.
- Moore Wilson's: 4 locationsA prominent Wellington/Central North Island regional grocery and food service chain.
3. Specialty, Asian & Regional Chains
- Night 'n Day: ~50+ locations (Convenience-focused supermarket/dairy chain, primarily in the South Island).
- Farro Fresh: 7 locations (Auckland-based boutique gourmet supermarket chain).
- T-Mark / Tai Ping / Dahua Supermarkets: ~20+ combined locations (Leading Asian grocery supermarket chains operating mainly across Auckland and major cities).
- Bin Inn: ~35+ locations (Nationwide bulk-food and wholefood retail stores).
There are some little individuals missing - such as Christchurch's Kai foods . .
Add the numbers - Food stuffs - total 437
Woolworths - total 261
Now I know - on the face of this - it looks bad - imbalance or not!
Think of it this way
There is a lot of discussion on the topic of SPREADING the competition!! So, good ol' New Zealand has a lot of little towns - Hanmer for example - that can afford to support only ONE shop!! So no competition possible there! Right?!
Who got to decide that it is THIS shop and not THAT shop there????
Realistically a TRUE competition is only possible in big towns - and that is happening! - Unless we are talking of splitting up all smaller shops eg Fresh choice from Woolworths - and then - consider that they need to have their own supply chain - transportation accounting etc etc etc - so those costs will still be there! Maybe become even bigger!!
It would be far better if the various shops have an OPEN supply chain and are not tied to a specific supplier only! Why should, say a potato grower, be contracted to either Woolworths - OR Foodstuffs ONLY - and ONLY that ONE chain?? Why can't said grower sell to both??? Mitre10 and Bunnings could learn from that! Imagine if both hardware stores would stock the same Brands for their tools - now that would really show a competitive market!
ah well - back to the coffee and breakfast
Follow up question - coffee can wait for a second!!
Key Town Examples with Only One Supermarket
North Island
- Coromandel Peninsula & Hauraki:
- Coromandel Town (Four Square)
- Tairua (Four Square)
- Pāuanui (Four Square)
- Whangamatā (New World)
- Northland:
- Paihia (Woolworths / Countdown)
- Russell (Four Square)
- Mangawhai / Mangawhai Heads (Four Square)
- Kaeo (Four Square)
- Waikato & King Country:
- Raglan (Four Square)
- Otorohanga (New World)
- Tūrangi (New World)
- Pirongia (Four Square)
- Central North Island & Taranaki:
- Ōakura (Four Square)
- Inglewood (Four Square)
- Ōpunake (Four Square)
- Taihape (New World)
- Waverley (Four Square)
- Wairarapa & Manawatū:
- Greytown (FreshChoice)
- Martinborough (Four Square)
- Pahiatua (New World)
- Foxton (New World)
South Island
- Marlborough & Tasman:
- Picton (FreshChoice)
- Takaka (FreshChoice)
- Murchison (Four Square)
- Wakefield (Four Square)
- Canterbury:
- Amberley (Countdown / Woolworths)
- Cheviot (Four Square)
- Akaroa (Four Square)
- Darfield (Four Square)
- Geraldine (FreshChoice)
- Hanmer Springs (Four Square)
- Fairlie (Four Square)
- Twizel (Four Square)
- Methven (Four Square)
- West Coast:
- Hokitika (New World)
- Reefton (Four Square)
- Franz Josef (Four Square)
- Otago & Southland:
- Arrowtown (Four Square)
- Tekapo (Four Square)
- Roxburgh (Four Square)
- Ranfurly (Four Square)
- Milton (Four Square)
- Te Anau (FreshChoice)
- Riverton (SuperValue / FreshChoice)
Why Small Towns Have Only One Supermarket
- Threshold Population: Full-service brands (PAK'nSAVE, New World, Woolworths) generally require a catchment population of at least 5,000–10,000 residents to justify a second competing store.
- Co-operative Dominance: Foodstuffs' Four Square model specifically targets rural and regional centers, supplying essential groceries where larger market formats are commercially unviable.
- Commerce Commission Scrutiny: NZ's grocery market structure has been under regulatory review regarding supply access, which historically made it hard for new independent operators to establish competing stores in small rural markets.I asked it to list the populations next to that list - not copying and paste - it - you will have to do that yourself - it is INTERESTING to say the least!
