Foodstuffs tries to block centre move

LAWRENCE GULLERY
Supermarket giants Foodstuffs and Progressive Enterprises may have to wait another month before they hear whether a supermarket will be part of the large format retail centre at Nelson Park.
The two companies and the Hastings District Council met yesterday to conclude a three-day Environment Court hearing in Hastings.
The battle centres around Foodstuff's bid to oppose a supermarket from going into the mega centre zone of the retail site.
Progressive, however, has appealed that stance as it wants to be selected as a mega centre zone retailer.
The council prefers to have a supermarket at the centre and its legal counsel, Mark von Dadelszen, said to the court Foodstuffs opposed the idea because it does not want a competitor in the Hastings market.
He said Foodstuffs was the dominant supermarket chain in Hastings and a competitor would reduce its market share from 85 percent.
"It is not disputed that the Hastings market is ready for another supermarket," Mr von Dadelszen said.
He said Foodstuffs appeared to want any supermarket proposal in the mega centre to go through resource consent process, which could take two to three years - in which time Foodstuffs could continue to dominate the Hastings grocery market.
"I submit that Foodstuff's position is essentially designed to protect its dominant market position and regard should not be paid to what is therefore a trade competition argument," Mr von Dadelszen said in his summary.
The council's chief executive, Murray Gilbertson, said the council is hoping for a decision from the Environment Court before Christmas.
"Council's position is that we would like to have a supermarket in there," Mr Gilbertson said.
"We are hoping for an answer from the Environment Court as soon as possible."
The council would continue negotiations with prospective retailers for the large format retail centre, but until the Environment Court decision was made, it be unable to say who its anchor tenants would be.