Reading Time: 2 minutes The major grocery retailers still dominate the market, according to the Commerce Commission’s third annual Grocery Report, but smaller retailers buying direct from growers are gaining ground. The report shows combined market shares of the major grocery retailers remain at 82% of the national market, but more activity from smaller and independent retailers was observed in 2025. “Gradual improvements in the diversity of the retail landscape are giving consumers access to a wider range of price points, products and shopping experiences,”
the report said. Since the previous report a number of independent retailers opened across the country, including stores such as Kai Co, Harvest Market, Farro Fresh, Plenty Foods and Reduced to Clear. Asian grocers have expanded their footprint. Along with brick-and-mortar store expansion, online retailers have widened the range of grocery products they sell. The owner of Wonky Box, Angus Simms, said it is easier now to set up in the market than it was a few years ago, especially when growers are willing to
sell directly to smaller retailers. Wonky Box is an online fresh produce subscription service that rescues surplus and cosmetically imperfect produce directly from local growers. However, he said, smaller brands need a point of difference, and that point of difference cannot be affordability. The premium nature of their service, influenced by fulfillment and delivery costs, makes it less cost-effective than supermarkets. It appeals to consumers’ world views, such as not wasting food. Simms said now is an opportune time for smaller retailers to get up
and running. The CEO of Eat New Zealand, Angela Clifford, said just as in any system a diversity of alternatives brings resilience. But, she said, “the country keeps centering food security discussions around supermarkets and can’t imagine any alternatives”. This restricts broader thinking. For example, she said, if there is a civil emergency situation, or fuel restrictions, “how do we assure alternatives to supermarkets can get fuel, or cross the Auckland bridge, or in a pandemic, how do we assure independent retailers and veg boxes
and farm markets can continue to operate?” She said 90% of food is bought through supermarkets but there needs to be time and opportunity to talk about alternatives.
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