Northlanders' generosity is overflowing -- so much so a new processing centre and outlet shop for donated items to hospice has opened.

The current storage and sorting space at the rear of the Hospice Shop on the corner of Robert and James Streets is too small and cramped to deal with all the donated items which are sold in the Whangarei and Waipu shops.

The final touches to the new processing site, formally Payless Plastics, were finished last week with the loading bay that is accessed off John St. A small shop that fronts onto Walton St opened on Monday with a plethora of clearance bargains.

Volunteers gathered on Wednesday to celebrate the official opening of the new centre.

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North Haven Hospice fundraising manager Karen Sandoy said it was starting to get very tight in the old processing centre.

"This new site has provided us with a much safer and nicer environment to work in. There are more tables to sort through the items."

She said there was a community need for the donated items and Whangarei was lucky as the community was also very generous.

Ms Sandoy said 28 per cent of operating costs for the North Haven Hospice was generated from the two hospice shops.

Crucial to the operation was the team of volunteers and everyday up to 60 were helping to make the shops successful businesses.

The new centre will be open Monday to Friday 9am-4pm and 9am-3.30pm on Saturdays.