Woolworths to take on rival New World with new ‘dark store’ in Devonport, Auckland

Woolworths is expanding its Direct to Boot trial, which would be available at its first 'dark store' in Devonport. Photo / 123rf

Woolworths is exploring a New Zealand supermarket first ‘dark store’ in Devonport, Auckland.

The supermarket giant confirmed to the Herald it had applied for consent from Auckland Council to open a “Direct to Boot” facility at a small site it owns on Lake Rd in Devonport.

Matt Grainger, Woolworths New Zealand’s director of property, said it will be the first example of a standalone facility with no supermarket attached.

“The facility will enable customers to order groceries online and pick them up locally within Devonport,” Grainger said.

Woolworths is rolling out its free Direct to Boot service (which has a minimum order requirement of $50) across the country following a trial this year.

The service allows shoppers to pull up in their car and someone on the team will load their groceries into the boot without them needing to get out of the car.

Woolworths – which operates Countdown stores in New Zealand and is in the process of a $400 million rebrand back to its original Woolworths name – currently has no supermarket in the Devonport area.

The nearest Woolworths stores are in neighbouring Takapuna (on Barrys Point Rd) and Hauraki Corner.

Rival Foodstuffs operates a New World in Devonport, 3.2km from Lake Rd.

Retail expert and managing director of First Retail Group Chris Wilkinson said making a local dark store was a certain bet for the brand.

“The ‘localisation’ of dark-stores is a smart and strategic move to satisfy growing demand from consumers wanting the convenience of orders that have been picked and packed for them,” Wilkinson said.

He said Woolworths did have a number of the larger, industrial-scale, automated dark stores in Auckland and Wellington, but those were situated in industrial areas.

Wilkinson said chore shopping, like going to a supermarket, is increasingly related to online channels, so people can claw back personal time.

“Consumers’ lives are becoming busier and they are increasingly prioritising things that matter most - such as personal time, leisure activities and experiences,” he said.

He said other aspects like increasing traffic congestion, petrol costs, and more people living in and around these centres made online shopping and local pick-up options a more economical option.

Woolworths New Zealand’s director of digital Mark Wolfenden said the retailer had been offering online shopping since 1996.

He said they had received positive feedback over the course of its Direct to Boot trial, which in the initial rollout will launch in 23 stores.

“Our current ambition is to spread the service further across the country and have it live in 42 of our stores by February,” Wolfenden said.

“It’s essential that we keep disrupting ourselves by bringing in new, innovative options for customers.”

Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports.