Expansion planned as Mitre 10 surges

Hastings Mitre 10 has been hailed as an example of the success the chain of owner-operators is enjoying.

Reporting to its recent annual members meeting, Mitre 10 chairman Martin Dippie said the $849 million revenue figure for the June 30, 2011, financial year meant the nationwide hardware retailer had now surpassed its nearest rival. Group revenue was up by $17.1 million on the previous year.

"The Hastings store was our first mega in 2004, outgrew its original floor plan within five years, and has just been doubled in size," he said.

"That's a huge customer endorsement.

"Our expansion programme has had a recent focus on provincial and rural centres but, next year, we have six more Mega stores on the drawing board, including stores in Auckland, Wellington and Christchurch.

"There really isn't another company in New Zealand right now that has made this level of investment during these difficult economic times - 11 new stores in 14 months.

"Since we introduced the then innovative Mega format in 2004, our group revenue has almost doubled and we are tracking towards breaking through the $1 billion revenue target in the foreseeable future.

"We are now the largest hardware retailer in New Zealand by revenue and by store numbers, the largest gardening centre chain in New Zealand and, have a growing penetration in the trade market. We are tracking well towards a strong future."

Mitre 10 Hastings managing director Graeme Ricketts said he was very pleased with the new store at The Park Megacentre in Karamu Rd and that it had drawn a lot of praise.

"It has set the benchmark for the Mitre 10 group," he said.

Hawke's Bay success against Australian competitor Bunnings has been made easier because of the difficulty Bunnings has had finding a suitable site for a large store.

In October, the Environment Court turned down an appeal by Bunnings for a 10,263sq m home improvement store on Pakowhai Rd on land zoned for food production.

The chain had an option to purchase a site in Napier's Prebensen Drive in 2004 but let the option lapse while waiting ratification from its Australian head office. This gave the Hawke's Bay-based Ricketts family the opportunity to present the vendors with an equally good offer and the site is now a Mitre 10 Mega.

patrick.osullivan@hbtoday.co.nz