A consumer action group wants immediate changes to the supermarket sector

The Government's laying out intentions to encourage a third player - to challenge the two incumbents, Foodstuffs and Woolworths.

It's planning to remove regulations discouraging other supermarkets competing.

Grocery Action Group chair Sue Chetwin says she would've liked the Government to consider forced divestment - which would see supermarkets give up some properties.

She says it would allow a third player to set up shop reasonably quickly in New Zealand.