Reduced To Clear has stores in Auckland, Tauranga, Wellington, Hamilton, Whangarei and Palmerston North.
According to the Reduced to Clear website, the company's grocery products are sourced from wholesale suppliers looking to clear their food, health and cleaning products for a variety of reasons. Deleted lines, excess stock, changes to packaging, and products being close to or past best before dates account for the company's stock.
The products are still fine to consume and in many instances are okay months or even years past their best-before dates, the website says.
Suppliers include Cadbury, Eta, Griffins, Tip Top, Goodman Fielder, GlaxoSmithKline, Coca-Cola, Sanitarium and Colgate-Palmolive.
Mr Sanford said the business was growing fast and they decided to open a store in Rotorua after they had a lot of inquiries from the city's residents.
"They're employing up to six staff," Mr Sanford said.
He said Reduced to Clear would have some good opening deals and would provide Rotorua residents with cheap food items.
Mr Sanford said the second business confirmed for the Lake Rd site was a major national tenancy.