SUPERMARKET WAR

A grocery war is brewing in Papamoa five days out from the opening of Pak'n Save - and neighbouring retailers are hopeful the cut-price chain's arrival will pump new life into their struggling businesses.
Pak'n Save owner operator Rob McGregor said the supermarket would be "very aggressive" when it came to price and he would be "disappointed" if the supermarket did not have the cheapest prices in Papamoa.
"We are bringing Pak'n Save's policy of New Zealand's lowest food prices to Papamoa.
"We have a dominant position when it comes to prices, absolutely."
The launch and chain's tough talk is expected to heat up the fight for grocery market share in Papamoa and surrounding areas such as Mount Maunganui and Te Puke. The supermarket's arrival has also created 170 new jobs in the Western Bay.
Progressive Enterprises, which owns rival Papamoa supermarket Countdown across the road from the new Foodstuffs-owned Pak'n Save, says the company has re-branded its supermarkets at Papamoa Beach Plaza and Bayfair into "new generation" Countdown supermarkets.
Regional manager Robin Tinner said these stores were a combination of Progressive's Countdown, Woolworths and Foodtown stores and were more premium, in terms of selection and quality, than the traditional Countdown stores.
Mr Tinner said not every customer was motivated by the lowest price.
"Our policy is to be the best value supermarket in New Zealand and value is represented by quality, range and price."
The comments come as Fashion Island and CentaMax retailers reveal they are eagerly awaiting the supermarket's opening on Tuesday, anticipating a large hike in traffic flows through the complex and customers through the doors.
Owner of Subway Papamoa, Tim Smith, said business had already jumped during construction of the supermarket.
"Our business is up about 10 per cent in the last three or four months," he told the Bay of Plenty Times.
Mr Smith anticipated having a Pak'n Save a few metres away could push his store up among the top 10 Subways in the country. "I think it's definitely going to be good," he said.
Hardy's Health Store staff member Jeannie Hartley, said the arrival of the supermarket would "boost Fashion Island like you wouldn't believe".
"I can't wait," she said.
Dollar Value manager Paula Harrison described the arrival of Pak'n Save as "fantastic".
"Bring in the people, we couldn't be more thrilled," she said.
Mrs Hartley said local people had commented that once Pak'n Save opened they would no longer need to go in to Tauranga city to get their groceries, something she anticipated would see them doing all their general shopping in Papamoa.
Tauranga Chamber of Commerce chairman Max Mason said Foodstuffs decision to move to Papamoa gave him "tremendous optimism".
"Although of course it will be creating jobs and economic wealth and development in our community, to me it's a symbol of the fact that some very professional operators, that is Foodstuffs, have got faith in Tauranga's long-term economic future."
Papamoa Progressive Association chairman Neville Dixon also believed the new supermarket would have a positive effect on the Papamoa community. "I think it will have quite an impact. The comments we are getting from people is they are all looking forward to it. It's provides competition, so it must have an effect on prices. I think Papamoa is big enough to handle it."
Mr Dixon expected the supermarket to attract shoppers from nearby areas such as Mount Maunganui and Te Puke, and anticipated it would revitalise the shopping areas.
"The more we can encourage people to shop locally, the better it will be for the community."
Mount Maunganui-Papamoa ward councillor Wayne Moultrie described the supermarket as a "major step forward for Papamoa".
"It's something new and exciting. It will have a positive effect on local businesses just by simply being there and attracting people."
Mr Moultrie also expected the supermarket to attract shoppers from outside of Papamoa.