The Mitre 10 trade distribution centre at Whatakū, Hawke's Bay. Photo / supplied by Mitre 10
New Zealand’s biggest hardware, DIY, garden and homeware chain isn’t stopping at 85 stores.
Mitre 10 has a two-pronged plan to expand.
CEO Andrea Scown said the national business wants more outlets and to forge further into the trade distribution sector, now in its infancy for the orange-and-black retailer.
The co-op wants a new store in one specific area, Scown said.
Mitre 10 New Zealand announced its full-year result on Saturday, cutting losses by $71 million and increasing revenue by 12%.
Scown said the business was “transforming” with five new stores, despite tough economic times.
She also talked of Mitre 10’s further growth on the Auckland isthmus, between South Auckland and the Auckland Harbour Bridge, on the narrow stretch between the Waitematā Harbour and the Manukau Harbour.
“We could do with another store in Auckland,” Scown said.
“We’re absent from that central space so that’s where we’re looking.”
Mitre 10 Mega Mt Wellington and Mitre 10 Mega New Lynn were within that central Auckland zone, as is the smaller Mitre 10 Ponsonby at 272 Richmond Rd, she noted.
“But we’re pretty much not in the rest of the places. We’re a bit absent and there is a lot of mature housing, yet you can only fit so much into Ponsonby. We will continue to look for sites.”
The business had scoped a number of properties in the eight-and-a-half years Scown has been at the co-operative. Four of those years are as CEO.
“But any retailer struggles for big-box space that is close to main motorways, easy to find. We have not been able to find anything worth taking forward.”
Bunnings has a large-format store at Mt Roskill. Last decade, owner Wesfarmers also fought for and won the right to open in Grey Lynn.
In 2017, the Herald reported how after a long battle, the Arch Hill Residents Association won concessions in the Environment Court over that new store.
Nearby houses had to be checked for structural damage from the building work, summer trading hours are limited, loudspeaker use was to be controlled and traffic slowed.
Actor Tandi Wright and media personality Jesse Mulligan spoke out against the store after the neighbourhood raised issues of child safety, noise, pollution, construction, traffic and parking.
But the $42 million store has now been trading for some years.
Scown said five new Mitre 10 stores had opened this year and/or are planned to shortly:
The second front for Mitre 10’s expansion was in the trade distribution network, only open to businesses or customers with accounts, often buying in bulk and often subcontractors or suppliers in the building sector.
Trade stores are not aimed at the retail sector.
“Our trade teams have years of local industry experience to help you manage the job, big or small,” Mitre 10 Trade said.
“Maximise your time on the tools by ordering online, in-store or over the phone and choose to collect when it’s ready or have it delivered direct to the job site.”
Scown indicated a strong appetite to take on the likes of Fletcher Building’s PlaceMakers and Graeme Hart’s Carters, although she did not name those businesses.
Mitre 10 has five existing trade distribution stores in the Hawke’s Bay’s Whakatū, Cambridge, Wellington and Christchurch’s Ferrymead.
“This is something you’re going to see more of,” she said of trade stores.
“There will be growth in this area because trade has grown as an increasing proportion of our business.
“It’s quite deliberate. We have larger sites dedicated to trade customers with more space in the stores and better access via transportation. As we get larger, we will just have to do more.”
The business cited strong partnerships with local and international businesses, which it said means it can stock a wide range of trade-compliant products at competitive prices.
Mitre 10 Trade names those suppliers as Winstone Wallboards’ Gib, DeWalt, Makita, Taranakipine, Bradford, bbi Wood Products, Southern Pine, Max Birt, Cemintel, Thermakraft, Marley, Ampelite, James Hardie, Genia, HiKoki and United Steel.
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.