- Melbourne-based boss announced a vast new Kmart store for Auckland鈥檚 Westgate.听
- At 6700sq m, this is planned to be the largest New Zealand Kmart store.听
- 24/7 opening hours planned, same as Kmarts at Sylvia Park and Manukau.听
Low-price听Australasian retail chain Kmart听has announced it will open its largest New Zealand store.听
An outlet spanning more than half a hectare is to be built in Auckland鈥檚 northwest at听Westgate.听
That will be almost directly opposite the American-owned听Costco Wholesale, in a street yet to be created: Maki Place, off the Maki St thoroughfare.听
Shoppers line up at Kmart Manukau. Photo / Sylvie Whinray听
Kmart Australia and New Zealand chief executive John Gualtieri said the new store would be the 28th in this country where the business employs about 2400 staff.听
鈥淭his is testament to the strong traction the Kmart brand has amongst New Zealand consumers, particularly at a time when customers are seeking out value,鈥 Gualtieri said.听
Kmart will offer its biggest range of affordable homeware, furniture, electronics, toys and clothing from the new store.听
It already has more than 300 Australasian outlets, serving millions of customers annually.听
The new Kmart Westgate will have 600 car parks. New fast-food drive-through outlets off Kakano Rd are visible top right. Image / Kmart听
At 6700sq m, the new big-box Westgate store will be larger than the almost half-hectare shop of just under 5000sq m,听Kmart Manukau, which opened last year.听
Kmart Westgate is to be developed in Maki St on a greenfields site never built on before. It will rise opposite the Westgate Lifestyle Centre anchored by Harvey Norman, Briscoes and Rebel Sport.听
About 240 staff will be employed at the new store.听
Wider aisles, bold graphics and extended product ranges are planned for the shop, whose owner鈥檚 mantra is 鈥渄ropping prices again to make life a little easier鈥.听
Map shows Westgate and all the businesses out there. Kmart's new location is shaded in blue in Zone 06. Map / supplied by NZ Retail Property Group听
Mark Gunton, chairman of New Zealand Retail Property Group (NZRPG), which is developing Westgate, said: 鈥淭he signing of Kmart at Westgate is a milestone achievement that has been years in the making. We have consistently received community feedback asking for a Kmart in Westgate, and we are thrilled to finally deliver on that promise.听
鈥淲estgate Town Centre has evolved into one of New Zealand鈥檚 premier retail destinations hosting major retailers like Costco, Bunnings, Mitre 10, and Pak鈥檔Save. The addition of Kmart helps solidify Westgate鈥檚 status as a leading retail hub.鈥听
NZRPG general manager Campbell Barbour said the new Kmart would be a 鈥渃ompelling offer鈥.听
The vast new Kmart store is due to open in 2026. It will be in Maki Place off Maki St, across from Costco Wholesale. Image / Kmart听
It would complement New Zealand鈥檚 largest Asian supermarket,听Foodie, which is 3200 sq m.听
It would also complement the听$100 million-plus Costco Wholesale, New Zealand鈥檚 only store of that brand, at Westgate, Barbour said.听
Some have raised concerns about Westgate traffic, concerned about the arrival of further popular offerings and pressure on transport networks.听
Kmart has 27 stores: at Albany, Ashburton, Auckland, Bayfair, Bethlehem, Blenheim, Botany, Dunedin, Hamilton, Hastings, Henderson, Invercargill, Manukau, Napier, Palmerston North, Papanui, Papatoetoe, Petone, Porirua, Queenstown, Riccarton, Richmond, Rotorua, St Lukes, Sylvia Park, Te Rapa, Whakatane and Whangarei.听
Westgate鈥檚 traffic problems concern Gunton too. Two years ago, he听went to court听against Auckland Transport and Auckland Council, arguing the authorities had not delivered on agreed roading networks in the ever-expanding hub.听
Kmart Westgate is due to open in northwest Auckland in 2026. Image / Kmart听
But Westgate Town Centre, Westgate Properties and NZRPG management听failed听to have听claims听upheld in Justice Gerard van Bohemen鈥檚 High Court at Auckland decision in 2022.听
Kmart鈥檚 expansion announcement today arrives in tough economic times.听
Retail spending has been听鈥漛leak鈥 lately: electronic card spending for June fell 0.6% ($40 million) and 0.1% ($5.7m) for retail and core retail (excluding motor vehicles and fuel) industries when compared with May, Stats NZ said in July. It said on August 30 that retail sales had听continued to decline听in the past three months.听
Kmart is owned by ASX-listed Wesfarmers, which also owns Bunnings in New Zealand.听
Kmart Bethlehem in that expanding area of Tauranga. Photo / George Novak听
The company appears to be bucking the retail downturn because on August 29, Wesfarmers announced its full-year result to June 30, 2024.听
It pushed revenue up 1.5% to A$44.2b and net profit after tax up 3.7% to A$2.6b.听
Kmart enjoyed 鈥渟ignificant earnings growth鈥, appealing to customers with its lowest-price positioning, it said. Sales growth was across all product categories: Kmart Group recorded 4.1% total sales growth in 2023-24.听
But New Zealand got special mention due to our economic doldrums.听
鈥淔Y25 will be influenced by cost-of-living pressures affecting customers鈥 capacity to spend, particularly in New Zealand, as well as increased competitive intensity,鈥 the investor presentation last month said.听
Anne Gibson听has been the听Herald鈥檚 property editor for 24 years, written books and covered property extensively here and overseas.听
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