Supermarket duopoly: What Nicola Willis’ adviser thinks about breaking up Foodstuffs and Woolworths

THREE KEY FACTS The Government will spend six weeks gathering information from the supermarket sector to understand how it can support a new entrant to the market. It will also seek advice from a specialist consultant on possibly breaking up Foodstuffs and Woolworths – the consultant previously said doing so would support competition , but was risky. If Cabinet backs a break-up, Nicola Willis hopes to have the required legislation passed next year.

Economic Growth Minister Nicola Willis’ hand is hovering over the nuclear button as she underlines what appears to be a genuine commitment to trying to improve competition in the supermarket sector. She is making a final push for a new player to enter the market, saying the Government would give it VIP treatment, removing regulatory hurdles impeding its growth. Willis is also putting it out there that the existing two giants that dominate the market – Foodstuffs and Woolworths – could take it upon themselves to sell parts of their businesses to a new entrant.

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