Bunnings force out Bayfair Mitre 10

A sudden profit plunge from increased competition has forced a high-profile DIY retailer to close and shift elsewhere in the Bay.
Brian Laird, franchise owner of Mitre 10 Solutions at Owens Place in Bayfair, couldn't believe how quickly his business suffered when the bigger Bunnings Warehouse opened nearby in Jean Batten Drive two months ago.
Another household name - McDonald's Family Restaurant next to the Phoenix Shopping Centre carpark in downtown Mount - is closing on Sunday after the franchise owner Wayne Graves decided not to renew the five-year head lease.
The small restaurant seating 30 people has been selling Big Macs for 10 years.
But Mr Graves is now looking for a suitable site in the area to establish a bigger, drive-thru restaurant.
Mitre 10 had been operating in the HomeZone Shopping Centre for only three years and it was heading toward annual revenue of $4 million. But Mr Laird said that with the opening of Bunnings this would be halved.
In the first month after Bunnings opened, the profit at the Mitre 10 store fell 12.5 per cent, then 30 per cent and now 50 per cent in the third month.
"We got blown out of the water," said Mr Laird. "We could handle Mitre 10 Mega in Cameron Rd but the moment Bunnings opened our profit started falling. We became the meat in the sandwich and got crunched; it happened so quickly.
"Our prices are identical to Bunnings but it's a perception thing ... because it's massive they think they are getting a bargain," said Mr Baird, who also operates the Mitre 10 store in Te Awamutu.
"I intended staying there (Owens Place) long term but now you are seeing the fastest exit this side of the black stump."
Mitre 10 is now holding a relocation sale - with a storewide 25 per cent discount - before the operation moves further afield to Papamoa.
Mr Laird is teaming up with Brian and Loretta Johnston, who will run Mitre 10 Solutions at the new Centa Max retail centre opposite the Palm Beach Shopping Centre in Gravatt Rd, Papamoa.
The 2500 sq m store will open in late August and feature a large garden centre and a dedicated yard for landscaping supplies. It will also have space for bathroom and kitchen displays.
"I hope we are far enough away from Bunnings," said Mr Laird. "Papamoa's a growth area and a store was always planned there. The library is being built across the road and a supermarket is going in - so it will be a busy area."
The 20-strong staff at Owens Place will move to the new Papamoa Mitre 10 store.
Mr Graves, McDonald's franchise owner in Tauranga, can see a brighter future with a drive-thru restaurant at the Mount.
"I really want to do a drive-thru and make it a destination with a play area and cafe," he said."
Mr Graves also operates McDonald's in Greerton, 11th Avenue, Devonport Rd and at Bayfair Shopping Centre - and the 15 Mount staff have been given jobs in those restaurants.
Eves Realty is now moving across the main street into bigger offices in the McDonald's building.
Eves managing director Richard Cashmore said the new site provided a higher profile and the Mount office could eventually grow its sales force from 12 to 20.
The new Eves rental/property management division will remain on the corner of Maunganui Rd and Nikau Crescent.
Another operation on the move at the Mount is Work and Income (Winz). The six-year lease for the Winz office just down from McDonald's in Maunganui Rd was up for re-negotiation.
And faced with the prospect of having to pay nearly double the rent, the Ministry of Social Development put a long-term plan into action.
The 12 Winz staff at the Mount this week moved into temporary offices in the Phoenix Shopping Centre's Cruise Deck arcade and by the end of the year they will join the 17 Bayfair staff in a new combined office - probably near the Bayfair Shopping Centre.
Surfing and streetwear store North Beach is expected to take over from Winz.