Woolworths alone has had approval for five applications to buy or lease sites this decade. Photo / Getty Images
Where supermarkets open or close is of great interest to communities, as shown in Hastings when New World shut in Flaxmere.
But where are new stores opening, where have they opened recently and where might they rise soon?
Woolworths, headed by chief executive Brad Banducci who
Although castigated by locals for shutting New World Flaxmere, rival Foodstuffs has opened 13 new stores since late 2022 and this month plans to open its fourteenth: a huge new Pak’nSave Papanui, replacing Pak’nSave Northlands 2km away, which is closing.
Toitū Te Whenua Land Information New Zealand this decade cleared five applications by Woolworths to buy or lease sites including that new Christchurch block for the business previously called Countdown.
Applications went to the Overseas Investment Office [OIO] to buy or lease New Zealand properties where it might operate or new stores were built, with the Madras St site new to Woolworths’ portfolio.
Addresses of General Distributors’ purchases approved by the OIO were listed, showing the group’s expansion in New Zealand including the new inner-city Christchurch site.
New World Flaxmere’s closure left locals upset but Foodstuffs has opened 13 new stores since late 2022, with a large southern one coming this month making it 14:
So that is a massive investment by Foodstuffs in new or replacement stores.
In Dunedin, rats shut a Woolworths’ Countdown for more than two weeks but that reopened on February 28.
Last year, Woolworths said it planned its first ‘dark store’ in Devonport, applying to Auckland Council to open a “direct to boot” outlet at a Lake Rd site. That is yet to open. Matt Grainger, Woolworths New Zealand’s director of property, said at the time it would be the first standalone outlet with no supermarket attached.
Two years ago, a Herald supermarket power list outlined how ownership was a path to wealth for Woolworth’s rival.
Woolworths Group is an ASX-listed company, with shares trading around A$32, so the stores are not privately owned.
But many of its New Zealand outlets are, leased to the business long-term.
In January, the Commerce Commission opened an investigation into the supermarket majors following an allegation of Fair Trading Act breaches.
The competition watchdog said it was investigating Woolworths, Foodstuffs North Island and Foodstuffs South Island after Consumer NZ lodged a complaint with the Commerce Commission in August.
General Distributors is its property arm, its office is registered to 80 Favona Rd which is Woolworth’s New Zealand head office. The company is the property-owning and leasing arm of Woolworths New Zealand, the OIO noted.
The company is 99.45 per cent Australian public, 0.36 per cent New Zealand and 0.19 per cent various overseas owned.
General Distributors has applied via standing consent which allows it to buy or lease initially unspecified plots of land within certain timeframes.
Standing consent allows entities to apply before identifying the property they want to buy or operate on via a specific address. The consents cover a predetermined number of purchases and have a use-by date. Buyers must notify the OIO each time they use a standing consent to complete a deal.
General Distributors’ most recent standing consent activity finishes at the end of this year.
The OIO said last July General Distributors won permission to buy up to 75ha of residential land that was not otherwise classified as sensitive, in up to 10 transactions with a maximum of 15ha per transaction by December 1 this year.
Included in that is:
Also under its standing consent conditions allowing it to buy 75ha in 10 deals by December 1, 2022, General Distributors won consent for:
In 2019, the Herald reported on the Australian business vastly ramping up investment in New Zealand as nearly $3 billion was poured in during a decade of refurbishing, rebuilding and expanding the supermarket network.
In 2021, a new $150 million fresh produce distribution centre was being developed for Woolworths in a $600m project.
Matthew Grainger, Woolworths NZ’s acting property general manager, then showed progress at the Wiri site where Macrennie Commercial Construction was in 2021 building the storehouse with a 2ha indoor floor area.
That distribution centre project has since been finished and is operating.
Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.
'This is not surprising given the ongoing issues in the market' - Steve Gracey of RLB.