The Commerce Commission has stopped short of a radical shake up of the supermarket sector to improve competition for consumers.

Its final report into the $22 billion sector says Foodstuffs and Countdown have been making large profits and exert too much control over the industry, at the expense of consumers and small food retailers and manufacturers.

The Commission is recommending they be forced to make more land available for new grocery stores, but stopped short of recommending they sell some of their stores to enable a third major chain to be developed.

Māni Dunlop spoke with the Minister of Commerce and Consumer Affairs, David Clark