ur Chief Economist Eric Crampton joined Sean Plunket on The Platform to discuss National's election-year proposal to split Foodstuffs' Pack'n Save operations from its New World and Foursquare banners.

Eric suggested the policy looks like a populist response to cost-of-living polling pressure rather than considered reform, and warned the accompanying cost-benefit analysis rests on a shaky assumption. That stores facing a major cut to profits won't end up closing. He explained that any real gains depend on removing the coordination that currently stops Pack'n Save and New World competing hard with each other, which would only pay off if new entrants can then move in and compete for those same customers. But that's where the policy falls short: New Zealand Initiative research mapping supermarket zoning across major cities found almost nowhere is actually zoned to allow a new supermarket to open, with explicit rules blocking new stores by date or size in many areas. He argued National's own fast-track reforms from last year don't fix this either, since they layer consent shortcuts on top of existing zoning rather than changing it, and leave out alcohol licensing. A gap that can add months or years of delay for a new entrant. His conclusion: liberalising entry through zoning reform would do far more for competition and prices than forcing the existing players apart.