Kmart's arrival signals major Bethlehem changes

Bethlehem Town Centre manager, Andrew Wadsworth. Photo/John Borren

The arrival of Kmart at Tauranga's Bethlehem Town Centre will result in the demolition of an existing food and liquor retail block to accommodate a new roading network and will see the long-established Thai Palace restaurant exit the centre.

Centre manager Andrew Wadsworth, of Colliers International, said the latest phase in the $15 million redevelopment, which began after Kmart signed on five months ago, would allow better traffic flow.

"This includes construction of roundabouts, the demolition and reconfiguration of some stores as well as the relocation of trees and the playground," he told the Bay of Plenty Times Weekend.

"Retailers realise the redevelopment will be great for business, and we anticipate attracting greater numbers due to the expansion of our product offering."

The first stage, involving the construction of a roundabout between the Countdown car park and playground, starts this month. The road reconfiguration - which includes the area currently occupied by a playground - will follow next month.

The redevelopment will result in the existing Bethlehem Rd entrance to the area where the Kmart is being built becoming exit only, and a new road being built off the entrance road to the Countdown site area.

The new road will come through an area occupied by the plaza outside Columbus Coffee and result in the demolition next month of the premises housing the Clever Kids toy shop.

The next stage of the new route will result in the demolition later this year of the building housing the Thai Palace, the House of Spice Indian restaurant, and Liquorland.

The bulk of the roading project is planned for completion before Christmas

Andrew Wadsworth

"We will be working very closely to support our tenants and customers through this project. Our priority is to ensure we maintain safe access to and around the centre while continuing to provide a quality shopping environment."

Mr Wadsworth said the centre was in advanced discussions with all of the affected tenants.

"At this stage, we expect them all to stay but, unfortunately, we haven't been able to accommodate Thai Palace and they will be closing later in the year. There's a lot of detail behind that one I can't go into, but as part of those discussions we've reached an amicable agreement and they will be leaving the centre."

Murray Kenyon, owner of Thai Palace, one of the first restaurants to set up in the centre, confirmed he would be leaving, but declined to comment further.

Clever Kids owner Judy Shaw confirmed she was in the final stages of negotiations with the centre: "I'm going to relocate within the centre and am looking to stay in a similar location."

Nick Carran, owner of the Columbus Coffee franchise, said he believed the long-term benefits of the redevelopment would be huge. The coffee shop would retain its existing outside seating area.

The new site for K Mart in Bethlehem. Photo/John Borren

"Like anything there will be a few growing pains," he said. "But I think the long-term strategy will be of benefit to the centre as a whole. The Kmart will turn the town centre from a suburban service centre into an actual shopping mall and it will draw people from outside the immediate Bethlehem catchment. It has always lacked a cornerstone retailer, and I'm just pleased to see it's finally moving forward."

The owner of House of Spice was currently travelling abroad, and the owner of Liquorland could not be reached for comment.

Mr Wadsworth said having Kmart in the product offering made the shopping centre even more attractive to retail operators and shoppers.

"Nine shops will be constructed along the front of the Kmart store to create a food precinct. Some of these retailers are new to the Bay of Plenty, endorsing the appeal of the rapidly expanding catchment. The interest in the street retail is big because it is next to Kmart."

Mr Wadsworth also confirmed that Katikati's Dorothy Hart would be moving into the premises adjacent to Columbus Coffee with her high-end fashion retailing business After Hours next month.

"Retailers realise the redevelopment will be great for business, and we anticipate attracting greater numbers due to the expansion of our product offering," he said.