Foodstuffs is proposing the consolidation of its North Island and South Island co-operatives into one national co-operative.
Foodstuffs North Island currently operates PAK'nSAVE, New World, Four Square and Gilmours, while Foodstuffs South Island operates PAK'nSAVE, New World, Four Square, Raeward Fresh, On the Spot and Trents.
In a joint statement, the chairs of the Foodstuffs co-operatives announced that they would be putting the proposal to members next year.
“Throughout the Commerce Commission’s Market Study into the retail grocery sector, we were challenged to deliver better value at the checkout," Foodstuffs North Island chairman Dean Waddell said.
"Both our co-operatives have accepted that challenge and have been working more closely than ever on strategic national initiatives that improve our efficiency and competitiveness. As one co-operative, we can do this better and faster."
The co-operatives are speaking with the Commerce Commission and will seek clearance to merge.
Currently, Foodstuffs North Island have 332 members and generated $9.8 billion during FY23. Foodstuffs South Island have 200 members and generated $3.8b during FY23.
"A nationwide Foodstuffs co-operative will always have significant operations and leadership capabilities in Auckland, Wellington and Christchurch," Foodstuffs South Island chairman Russell McKenzie said.
He says that Foodstuffs' focus on delivering the best range and value for customers will not change.
"All supply chain networks serving our members and customers will remain and operate as they do now."
The Commerce Commission said it has been approached by Foodstuffs North Island and Foodstuffs South Island regarding the proposed merger.
"Preserving the competitiveness of markets in New Zealand is an enduring priority for the Commission, and we will carefully scrutinise the implications of the deal for suppliers and consumers," general manager Antonia Horrocks said.
The vote for the merger will occur in mid-2024.
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