Foodstuffs merger

Stuff reports:

Foodstuffs Wellington and Auckland have merged today to form Foodstuffs North Island.

The merger means Foodstuffs, the 90-year-old New Zealand co-operative that owns the Pak ‘n Save, New World and Four Square brands, now operates two entities in New Zealand – Foodstuffs North Island and Foodstuffs South Island.

The combination plan was announced in February and in July member owner-operators unanimously voted in favour of the merger. Last month the High Court gave its approval.

New Foodstuffs North Island managing director Murray Jordan said the merger would lead to better customer experience, more stores and associated jobs in local communities.

Both customers and members of Foodstuffs North Island would benefit from all operations running off one IT system and the integration of back office functions, Jordan said.

As a result of the integration, Foodstuffs North Island would be able to launch online shopping for its New World brand, he said. That’s something Foodstuffs’ competitor Progressive Enterprises already offers for its Countdown brand.

That will be good. I use Countdown online shopping and they are pretty good. However competition will be a good thing, and having two competing online supermarket chains should see more discounted food, and possibly cheaper delivery fees.