The potential buyer remains a mystery with supermarket giants Woolworths and Foodstuffs denying any involvement in the purchase.
Thesuburb of 11,000 people has been without a supermarket since New World - owned by Foodstuffs - closed abruptly on February 25, sparking community protests.
However, Flaxmere could now potentially end up with two supermarkets, after an announcement last month that a new tenant was entering the former New World site, and the revelation this week that HDC is selling another site for a supermarket.
A council spokesperson said the Flaxmere community had been asking for a full-size supermarket in the suburb, and the council had deemed it a priority.
“At this stage, we are bound by commercial confidentiality and cannot share any further information, but we look forward to telling the community more in the coming weeks.”
A map of a proposed supermarket development out the back of Flaxmere Village, which initially was going to be taken up by a New World development. Also highlighted is the location of the old New World.
The spokesperson said after market research, three parties had been invited to participate in a formal tender process, seeking development proposals for a supermarket on the one-hectare commercially zoned site in Flaxmere’s town centre.
One tender was received and negotiations commenced in November last year and in February the council approved the chief executive to negotiate terms.
In June, HDC chief executive Nigel Bickle signed a sale and purchase agreement after negotiations and purchasers’ due diligence, the council spokesperson said.
A spokesperson for Woolworths New Zealand - Foodstuffs’ biggest competitor - said they were not involved with the sale and purchase.
“We’re always looking for new opportunities to open stores in communities across Aotearoa New Zealand, we don’t have a Flaxmere proposal to share at the moment. We will update the local community if that changes.”
A Foodstuffs spokesperson said they had not signed any agreements.
A new player in the market, Fresh In, Fresh Out, which opened a supermarket in Hamilton earlier this year, has expressed recent interest in starting a supermarket in Flaxmere.
However, FIFO owner Manish Thakkar also denied he had signed a sale and purchase agreement with the Hastings District Council.
Ngāti Kahungunu chair Bayden Barber said the iwi group, which in 2021 expressed interest in breaking up the supermarket duopoly in a submission to the Commerce Commission, had not been involved with any negotiations for the vacant site.
The project was expected to cost about $21 million for the new 1900sqm supermarket.
Foodstuffs North Island general manager of property Nick Hanson said in 2022 it would be a great addition to Flaxmere.
“This brand-new New World will provide a world class, in-store shopping experience and fresh foods offering, while catering to the unique needs of the Flaxmere community.”
He did not give a timeframe of when the new supermarket would open.
A joint statement at the time from the council and the supermarket giant said they had made the “difficult decision” to cancel a sale and purchase agreement.
“This follows Foodstuffs North Island’s conclusion that building a supermarket on the site in the current economic environment isn’t sustainable,” the statement said.
Independent supermarket to fill former New World building
Flaxmere New World announced its closure for February 25. Photo / Paul Taylor
In July, the owners of the former Flaxmere New World building said they had signed a lease with a new tenant planning to open an independent supermarket.
The Sung Family Trust said basic work had been carried out on the building and it hoped work would be completed by the end of the year.
“The tenant’s work will start soon after,” a family spokesperson said.
The Sung Family Trust couldn’t confirm the name or a specific timeline for when the independent supermarket would open in the Hastings suburb.
“By request of tenant, we are unable to release further information - they will release more information when the time comes.”
The lease for the ageing building in the heart of the growing suburb was up for renewal in March, with Foodstuffs North Island confirming it would not take it up due to the significant refurbishment the building needed.
The New World store closed its doors on February 25.
In May a community-initiated Flaxmere food co-op was launched, inspired by the closure and community need.
Michaela Gower joined Hawke’s Bay Today in 2023 and is based out of the Hastings and Central Hawke’s Bay newsrooms. She covers Dannevirke and Hawke’s Bay news and has a love for sharing stories about farming and rural communities.
