Smiths City heading to Hastings

The last empty shop in old Mitre 10 Mega building on St Aubun St has been leased to NZX-listed retailer Smiths City. Photo / Paul Taylor

South Island large-format appliance and furniture retailer Smiths City is opening a Hawke's Bay branch in Hastings.

In February the NZX-listed retailer takes up the final slot in the sub-divided former Mitre 10 Mega building in St Aubyn St.

Colliers International agent Danny Blair said Colliers worked closely with Hastings District Council's economic development team to woo Smiths City by "providing good evidence" as to why it should make Hastings home.

He said Smiths City's arrival cemented Hastings as a strategic location for big boxed retailers - it is occupying 2230 sq m of the 5,700 sq m building.

Smiths City's immediate neighbours in the same complex are PK Furniture and Warehouse Stationary, with nearby Freedom Furniture and Harvey Norman enabling comparative shopping.

Mr Blair said Smiths City's entry into Hastings came on the back of a national expansion.

"The company announced as part of its entry into Hastings it would overhaul the retail layout in line with market research carried out this year. This new layout will then be rolled out across the store network."

Mitre 10 Mega moved from St Aubyn St to The Park Mega Centre about five years ago, where its neighbour The Warehouse also created a new format to be rolled out nationally.

"There is a lot of confidence in Hawke's Bay at the moment and with annual spending volumes up by 9.4 per cent we are seeing a lot of new entrants into the market, particularly in the retail sector.

"We came close several times to securing Smiths City over the years so we are extremely pleased to have finally closed the deal."

In a statement to the NZX Smiths City said revenue increased by 18 per cent in the six months to the end of October, partly due to its purchase of Furniture City.

In January Smiths City's trading arm, Smiths City (Southern) bought Furniture City and its logistics operation for $5.85 million. The purchase gave Smiths City two stores in Auckland and one in Whangarei, helping build a national presence.

Mr Blair said sales activity in Hawke's Bay was outpacing the previous two years and leasing transactions were at an all-time high.

He said Colliers were working with a number of "large occupiers" looking for entry into both Hastings and Napier.

"Some exciting announcements are likely to be made in the New Year."

The Hastings store will be Smiths City's 30th.