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Home / New Zealand

Flaxmere New World closure: What happens to other businesses when a supermarket shuts up shop?

Michaela Gower
By Michaela Gower
Multimedia Journalist, Hawke's Bay Today·Hawkes Bay Today·
1 Mar, 2024 05:00 PM5 mins to read

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'Stupid': Flaxmere shoppers react to the news that their New World is to close in February. Video / Paul Taylor

What happens when a long-standing supermarket decides to pack up and leave a suburb? Michaela Gower reports on the first week of consequences of the loss of New World in Flaxmere.

On the day after the closure, there was “nothing”.

Olive Tree Variety Store owner Thomas Park had hoped for a few customers. Times are tough in the suburban variety store market, but New World’s presence brought people to Flaxmere Shopping Village and brought him business.

But on Monday, there was nothing but quiet as the old New World sign was removed from the top of the store nearby.

Park fears what a vacant building of that size nearby will mean for him and for Flaxmere if it stays that way for any time.

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Thomas Park said he had no shoppers the day after New World closed. Photo / Paul Taylor
Thomas Park said he had no shoppers the day after New World closed. Photo / Paul Taylor

In short, he fears it’ll attract crime.

“I hope the bad people don’t come. That kind of situation is not good.”

He’s not going anywhere, hoping to ride out the “big impact” the closure will have on him.

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“We have to live with this situation,” he said with a smile.

‘Why would any landlord want to lose a tenant like New World?’

The shopping village and vacant New World building are owned by the Sung Family Trust. The village is made up of a mix of retail and takeaway food stores, which benefited from the foot traffic of New World shoppers in the Hastings suburb.

The New World Flaxmere sign has been taken down after permanent closure. Photo / Paul Taylor
The New World Flaxmere sign has been taken down after permanent closure. Photo / Paul Taylor

Over the past month, plenty of blame has been cast towards both Foodstuffs and the Sung family – how could they not work something out?

A Sung family spokesperson said the trust had tried to compromise with Foodstuffs over the closure but ultimately it was a Foodstuffs business decision to leave Flaxmere.

“Why would any landlord want to lose a tenant like New World? Maybe it is as simple as a business decision.”

The spokesperson said the trust would like to see a supermarket, or any business that would help service the community, move into the space but no decision had been made.

“We would love to have Woolworths. However, we are not aware they are even coming into Flaxmere.”

A Foodstuffs spokesperson said closing the store wasn’t a decision taken lightly.

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“The building is leased and hadn’t been invested in by the landlord for decades. Foodstuffs North Island had been talking to the landlord over a number of years about upgrading the building to bring it up to the standard we wanted for our teams and customers.

“Unfortunately, we couldn’t get that commitment from the landlord in the timeframe required and the decision was made not to renew the lease.”

New World in Hastings has agreed to deliver groceries to Flaxmere on Tuesdays and Thursdays for orders of $100 and over as a way of filling the hole.

‘I’m not fearful of the future’

For those now left to make a living without the help of supermarket foot traffic, there are mixed feelings about the future.

There’s Thomas Park’s view.

Tim Klingender, owner of the Flaxmere Pharmacy, said it was odd to see an empty car park. Photo / Paul Taylor
Tim Klingender, owner of the Flaxmere Pharmacy, said it was odd to see an empty car park. Photo / Paul Taylor

But Flaxmere Pharmacy owner Tim Klingender is confident his business will continue to see the same level of customers, despite being right next door to the old supermarket site.

“The biggest thing we have noticed is the lack of cars in the car park. The actual busyness of the centre has reduced.”

He said the pharmacy thought of itself as a destination and it was surprising how many people in the community walked to the village.

“We are slightly isolated out here. We have an industrial belt between us and Hastings and it’s a little bit further away. Here is more accessible.

“I’m not fearful of the future. A solution will arrive at some point. Just when that is going to happen we don’t know, but we are optimistic for the future.”

Ian Holloway, who owns Hollies Bakery, said he had faith in his regular customers. Photo / Paul Taylor
Ian Holloway, who owns Hollies Bakery, said he had faith in his regular customers. Photo / Paul Taylor

Long-time business owner Ian Holloway, of Hollies Bakery, said he believed his product had stood the test of time and he felt his customers would return, despite the absence of the supermarket.

“I’ve been here 31 years, so I am quite well established. I’ve got a lot of regulars and I can’t see them dropping off in the near future.”

He said business before the closure was steady and, when the supermarket “scaled down”, the bakery still got the same amount of people through the store.

“If you sell a good product, people are going to come. It doesn’t matter where you are.”

He had seen the village change. There was once a garden centre, a bookshop and a butcher.

“There was a post shop, a bike shop and a video shop. I’ve seen them come and go.”

The Sung Family Trust is working with real estate agents to find a tenant for the supermarket building. It said no decision had been made yet, as New World still had to remove some of its belongings from the store, which could take some time.

Michaela Gower joined Hawke’s Bay Today in 2023 and is based in the Hastings newsroom. She covers Dannevirke and Hawke’s Bay news and has a love for sharing stories about farming and rural communities.

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