By IRENE CHAPPLE
Australian owned retail chain Kmart is negotiating two new Auckland sites, a move likely to scotch rumours that its troubled start in New Zealand would eventually force it to pull out.
Kmart, which is owned by Australian-listed Coles Myer, is understood to have lost money for most of
its 14 years in New Zealand.
Coles Myer's half year results in March showed a 2.5 per cent increase in profit to $238.8 million under the stewardship of new chief executive John Fletcher.
The company does not publish Kmart New Zealand's accounts, but general manager New Zealand Craig McKeown yesterday said "we're doing okay now" when asked if Kmart was making a profit.
He said questions had been asked 18 months ago about whether the brand, which has 11 stores across the country, should stay in New Zealand.
McKeown compared Kmart's issues in the New Zealand market as being similar to that of The Warehouse in Australia, which is now attempting to stem losses in the overseas arm after expanding there three years ago.
McKeown said Kmart had made improvements including establishing a New Zealand-based management team - rather than have decisions coming out of Australia - and refining its image.
McKeown would not say where the new sites were because talks were still at a delicate stage, but he expected an announcement could be made within a month.
The company was also looking for more sites and he believed New Zealand could support 20 Kmart stores.
