Market to widen for suppliers

Supermarket operator Progressive Enterprises is promising to reduce entry barriers to the $100 billion Australian market for its suppliers.

At a meeting of more than 700 suppliers yesterday, the company, which operates the Foodtown, Woolworths and Countdown chains, said it was looking to open up markets for their products across the Tasman by simplifying its transtasman business.

Suppliers would be able to take advantage of parent company Woolworths Australia's distribution centres there to lower market entry costs.

Woolworths chief executive Roger Corbett said he saw New Zealand and Australia as a common market "and we are trying to make entry into that common market of 24 million people as easy as possible".

Efficiencies from that would, eventually, result in cheaper grocery prices, he said.

"The future of New Zealand is not to be protective. The future of New Zealand is to take advantage of the opportunities that come along to service a much bigger market."

Corbett was responding to concerns that the two main supermarket chains in New Zealand would use their clout to drive down prices paid to local suppliers.

He said significant investment was planned to refurbish and enhance its Foodtown and Countdown chains.