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Home / Business / Companies / Retail

Supermarket chains in expansion mode

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
22 Mar, 2015 04:00 PM5 mins to read

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New World's Browns Bay supermarket opened on March 17.

New World's Browns Bay supermarket opened on March 17.

$300 million of work under way as companies build new stores and modernise others, adding new jobs.

Expansion by the two dominant supermarket chains has moved into a new phase, with more than $300 million of work under way.

The new New World Browns Bay opened on the North Shore on Tuesday, Waiheke is getting its existing Countdown replaced by a $35 million rebuild nearby and New World Milford shut on Sunday

to be renovated and reopened before Christmas.

Angela Bull, Foodstuffs North Island property development general manager, said New World had been in Browns Bay for 43 years, trading from its Bute Rd site. But expansion was necessary to meet growing demand so a new 2610sq m store at 21-23 Anzac Rd with 81 car parks had been built. Gary Christini is the owner-operator. The store employs 130 staff.

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Also last week, Adrian Walker, Countdown's property general manager, announced a new $35 million Waiheke Island Countdown to replace the existing shop at Ostend. That new store will be nearby in Belgium St and will open in the first quarter of next year, be 150 per cent larger than the existing store at 3490sq m and will include five to six specialty retail shops along the roadside, and a partially underground car park with 179 spaces.

"We've been very open about the challenges we've had that are unique to large construction on the island - the size and nature of our site, the store features required, and the cost to bring over materials and labour support from Auckland," Walker said.

"We needed to find a solution that would stack up both for what the growing community needs and also financially for us to make this investment."

Staff numbers will almost double with an extra 60 being taken on to add to the team of 73 in the current store and Walker says the existing Countdown is one of the largest businesses and employers on the island.

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Doug Cochrane, general manager retail for Foodstuffs North Island, announced in January that New World Milford would be rebuilt, after trading in the village for 50 years.

A $220 million Countdown Ponsonby is rising in the new Cider Building.

Pak'nSave Ormiston is well underway with construction due to finish by November and the developer is Todd Properties, a Foodstuffs spokeswoman said.

A controversial Four Square Coromandel is due to open in June as a replacement store but much larger than the old business.

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The Pak'nSave Whakatane is undergoing a significant expansion and refurbishment and is due to be finished by September. Another Pak'nSave at Taupo is also undergoing a significant expansion and refurbishment due for completion in September.

The $25 million Pak'nSave Westgate opened in November.

"This was a completely new catchment for Foodstuffs as we had no other store presence in this community," the spokeswoman said.

New World Howick opened in December.

"This was also a completely new catchment for Foodstuffs as we had no other store presence there."

The redeveloped Pak'nSave Whangarei opened in February and the upgraded Pak'nSave Pukekohe store opened in August. Work there included modernising large parts of the store. Pak'nSave Albany's upgrade was finished in August and New World Botany's upgrade was finished in September.

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DIY makeover coming to a supermarket near you

Noticed any changes in your local supermarket lately?

Maybe "cut-through aisles" have been created, to allow you to duck from one end of these giant cavernous food halls to the other. Yes, those cunning store designers certainly do know you just called in for the milk and the bread, and yes, the position of those items is often designed to lead you on a bit of a wild goose chase through the entire store in the hope the Cadbury's section might catch your eye.

Perhaps the deli offer has been extended, there's a bigger range of fruit and veges, or the chillers have gone all hi-tech with swish sliding glass covers to keep the cold in.

Maybe your store is a bit lighter or bigger?

Perhaps it all just looks a bit better to counter the drudge of pushing that metal trolley up and down and being bombarded by the Easter Bunny.

Welcome to the Big DIY Supermarket Makeover.

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A quiet revolution is taking place in this sector as Australian-owned corporate Countdown and New Zealand-owned co-operative Foodstuffs both move into a new phase and take a gear-shift into the DIY market.

They're taking a closer look at their current offerings and re-doing existing stores en masse.

In the past few years both have built many new stores so it's time now to stop, take a breath and pause for a backwards glance.

That's leading to some big changes.

Foodstuffs have released a long list of stores where modifications are being carried out to make the offer more appetising to their customers.

We consumers are altering changing how and when we buy food, and generally shopping more often.

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So if your local hasn't changed, it could well soon. Now, what's for dinner tonight?

Growth phase

• Replacement $20m New World Browns Bay: opened last week.
• Replacement $35m Countdown Waiheke Island: opening early 2016.
• Rebuilt Milford New World: opening by Christmas.
• New Countdown Ponsonby, Cider Building: under construction.
• New Pak'nSave Ormiston: under construction.
• Expanded Four Square Coromandel: opens in June.
• Extended Pak'nSave Whakatane: to be finished by September.
• Refurbished Pak'nSave Taupo: work ending in September.
(Sources: Foodstuffs/Countdown).

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