A new five-building big-box retail hub is under construction in Auckland’s northwest at Westgate, where New Zealand’s biggest Kmart is being built.
Mark Gunton’s privately owned New Zealand Retail Property Group is developing five new warehouse-style shopping buildings.
Last September, low-price Australasian retail chain Kmart said it would open its largest store in this country, anticipated to be trading next year.
An outlet spanning more than half a hectare is being built.
That is almost directly opposite the American-owned Costco Wholesale, in a street yet to be created: Maki Place, off the Maki St thoroughfare.
Kmart Australia and New Zealand chief executive John Gualtieri said last year the new store would be the 28th in this country, where the business employs about 2400 staff.
“This is testament to the strong traction the Kmart brand has amongst New Zealand consumers, particularly at a time when customers are seeking out value,” Gualtieri said.
Kmart will offer its biggest range of affordable homeware, furniture, electronics, toys and clothing from the new store.
Last September, NZRPG announced it had secured $235 million in new funding for Westgate from a group led by Japan’s Nomura on the same day it announced Kmart opening New Zealand’s biggest store at its Auckland hub.
Gunton, principal and founding director of the real estate business, said the new funding would enable him to expand Westgate.
A consortium of global private credit investors, arranged by Nomura, provided the business with a new funding package.
That gives it the necessary financial resources to meet the level of demand from the market for retail, commercial and industrial space as it expands the master-planned town centre on a 52ha site in Auckland’s northwest, Gunton said.
Kmart already has more than 300 Australasian outlets, serving millions of customers annually.
The retailer made $106m net after-tax profit in the June 30, 2024 year (previously $69.6m).
Revenue rose to $994m (previously $919m).
Administration costs rose to $33m (previously $24m) to boost pre-tax profit to $147m (previously $96m).
The under-construction Kmart Westgate will be 6700sq m, bigger than the almost half-hectare shop of just under 5000sq m, Kmart Manukau, which opened in 2023.
Kmart Westgate is on a greenfields site never built on before.
Last year, Gunton said: “The signing of Kmart at Westgate is a milestone achievement that has been years in the making. We have consistently received community feedback asking for a Kmart in Westgate, and we are thrilled to finally deliver on that promise.
“Westgate Town Centre has evolved into one of New Zealand’s premier retail destinations hosting major retailers like Costco, Bunnings, Mitre 10 and Pak’nSave. The addition of Kmart helps solidify Westgate’s status as a leading retail hub.”
NZRPG general manager Campbell Barbour said the new Kmart would be a “compelling offer”.
About 240 staff will be employed at the new store, which is to have wider aisles, bold graphics and extended product ranges.
The development site where Kmart is being built is directly opposite the Westgate Lifestyle Centre anchored by Harvey Norman, Briscoes and Rebel Sport.
In 2023, that 28-store lifestyle centre sold for $85.7m, the vendor being Kiwi Property Group.
Real estate agency Whillans Realty Group said it had closed the sale, describing it as 2023’s largest.
Clive Mackenzie, Kiwi chief executive, said a joint venture bought the property: half Harvey Norman and half interests associated with Briscoes managing director Rod Duke.
Managing director Bruce Whillans and Colliers international sales director of capital markets Richard Kirke were contracted to sell the centre. Whillans brokered it.
Harvey Norman, Freedom Furniture, Hunter Furniture, Briscoes and Rebel Sport are the centre’s anchor tenants but Warehouse Stationery, Bed Bath & Beyond, Bedpost, Flex Fitness, Lighting Direct and Nood also have outlets there, paying a net annual rent of around $6m.
Retail spending fell lately, down 0.5% ($34m) in September 2025 compared to August.
The largest category decreases were in motor vehicles (excluding fuel), down 2.6% ($5.2m), and apparel, down 1.4% ($4.8m).
Durables also fell, with spending falling 0.8% or $14m.
Spending in the consumables category fell by 0.5% (down $15m), with the fuel category also falling by 0.5% (down $2.5m).
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.