The second of the two major supermarket chains will set up a wholesale grocery service for rival retailers.

It was one of the recommendations of the Commerce Commission report into the industry.

Foodstuffs announced its plans yesterday with Woolworths announcing a similar move earlier this month.

Foodstuffs North Island chief executive Chris Quin told Mike Hosking they've had a wholesale business for many years in the Gilmores brand.

But he says this is a different requirement.

Quin says they need to get different arrangements with suppliers in place,  to understand what competing retailers actually need from them.

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