Foodstuffs North Island and South Island operations want to move under a single umbrella

The proposal will go to members early next year -- while Commerce Commission approval is being sought.

Foodstuffs North Island says a hard look at business costs must be done, to achieve its goal of giving more value to customers.

Consumer NZ Chief Executive, Jon Duffy says it's standard for parties wanting to merge, to say back office savings will be passed onto consumers.

He says that's not always the case, and businesses have the choice of whether they will pass on savings.