Foodstuffs argues merging its North and South Island divisions could benefit suppliers

The Commerce Commission declined the proposal in October - suggesting it would lessen grocery competition and hurt suppliers.

Foodstuffs is appealing the decision.

North Islands Chief Executive, Chris Quin, says a merger could simplify supplier contracts - and they could still work with individual brands or branches.

He says customers expect a good deal - and that's what Foodstuffs will still be looking for.

Quin says about 80-percent of its products come from the world's 20 largest suppliers - which isn't quite what people think.