Legalising groceries

Dr Eric Crampton
Insights Newsletter
17 July, 2026

The Commerce Commission’s retail grocery competition inquiries always had the wrong focus.  

If there are enormous profits to be made in groceries, why is nobody else trying to steal them away? The world has many supermarket chains. Kiwis can also build new ones. If there are $100 notes on the sidewalk, why is nobody picking them up? 

Zoning rules seemed to be the underlying problem. We argued that large-scale entry was de facto impossible.  

Our submissions and columns could point to some of the rules in a piecemeal fashion. But we could not put together a comprehensive map. There are literally hundreds of bits of zoning rules that need to be examined across the main centres. Our shop is tiny, and we have no GIS experts on staff.  

Anthropic’s Claude Fable 5 changed everything.  

Over the past couple of weeks, I’ve been working with Fable to do the work we could not do during the market studies process. Fable classified roughly 250 zones across nine plans, plus hundreds of precinct documents.  

We have comprehensive maps for Auckland, Hamilton, Wellington (and environs), Christchurch and Dunedin. The maps show where large-footprint supermarkets are permitted, where getting permission will be more difficult, and the places where cities have very literally banned competition.
  
In cities with mapped water infrastructure constraints, we present those as overlays.  

I went through several rounds with Fable, catching errors and steering improvements. We put up a test version of the site for urban-economist and urban-planning friends to play with and provide advice. The high-test version of GPT 5.6 provided a hard adversarial review, looking for errors and making suggestions. After a few iterations, we asked the high-test version of Perplexity Compute to provide additional peer review.  

The site is now live, as a running experiment. Help us improve it. If you find errors or opportunities for improvement, please let us know via the site’s feedback form. Fable will sweep feedback weekly, provide me with options for updates, and we’ll make the site better. 

Currently, the maps show where a 4000-square-metre supermarket could be built. I would like users to be able to select different-sized stores and have the maps update. It is possible when my Fable token quota resets.  

Watch for more of these experimental sites to come.  
 
We live in an age of wonders and our regulators are stuck in the dark ages.  

Explore the supermarket zoning maps and share your feedback here.

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