A would-be supermarket operator expects a violent and vigorous reaction from the two major chains to any new significant new entrant to the sector, RNZ reports. The two major chains, Woolworths and Foodstuffs, continue to say there are plenty of small operators successfully competing with them and suggest new types of trading such as online also offer opportunities. Tex Edwards of Northelia estimated that a third major chain it would need a 15% market share, with up to 150 shops in major centres and capital investment of $3.5 billion. It would also need to expect operating losses for its first three or four years.
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