Clothing giant's arrival tipped to shake up retail game

Zara is one of the world's leading clothing retailers. Photo / Getty Images

Retail analysts are warning that the industry will need to "up its game" with international clothing giants Zara and H&M set to move into Sylvia Park next year.

There has been speculation for years that Spanish clothing and accessories giant Zara would be moving to New Zealand, and yesterday it confirmed it would be opening in time for next Christmas.

The retailer is keeping details around its launch secret, but it is understood that the Sylvia Park flagship store will be significant in size and will offer the full Zara range at similar pricing to what it is globally.

First Retail Group managing director Chris Wilkinson said Sylvia Park was going to be a destination for shoppers across New Zealand.

"What we'll see with Sylvia Park is that it will be a destination for people from the Bay of Plenty and from the Waikato - people will travel some serious distances to get there," he said.

"It's going to herald a new way of shopping and some of these other centres will be forced to up their game significantly."

Chris Gudgeon, chief executive of Kiwi Property which owns Sylvia Park, said both Zara and H&M would launch at a similar time late next year and he was thrilled to have secured the first Zara store in the country.

Kiwi Property plans to invest $11.5 million to accommodate Zara and is in the planning process of a 20,000sq m $140 million expansion for the mall, expected to begin in 2017.