Rotorua's soon-to-open Kmart is drawing other well-known brands to the city and encouraging existing retailers to expand, according to those behind the project.
Kmart will open in March or April next year, creating up to 100 new jobs. There will be at least another 40 jobs created in11 or 12 other retailers opening around the new store, all part of a $20 million development on the Trade Central site on Amohau St.
Kmart will open in March or April next year, attracting up to 100 new jobs. Photo/Ben Fraser
Both Kmart and Pukeroa Oruawhata Group, which owns Rotorua Central Mall and Trade Central, say the announcement this week that Kmart was now operating an online shopping service in New Zealand didn't take the gloss off the much anticipated Rotorua store.
Structural work is progressing on the new shopping centre, which will be next to Mitre 10 Mega.
The project will see a central Kmart entrance leading to a 2000sq m store at the rear of the site. Nine to 10 other retailers between 100sq m to 200sq m each will be along the shop front either side of the Kmart entrance, and two larger stores of 1000sq m each will be to the right, next to Mitre 10 Mega.
Pukeroa Oruawhata Group general manager Peter Faulkner said Bed, Bath & Beyond, which was at Rotorua Central, would move to one of the two bigger premises of 1000sq m. Its current site at Rotorua Central was being advertised and was yet to be leased.
Mr Faulkner said he wasn't in a position to reveal the other larger retailer or the nine to 10 other tenants, except to say 70 per cent of them were leased and most would open before Christmas.
"It's a reflection of the level of interest in retail in Rotorua. There's strong demand and strong inquiry."
Mr Faulkner said it was hard to estimate how many more jobs those shops would create but it was likely to be at least 40.
"While it was just a hole in the ground it was really hard to get people interested but now we have got the steel coming up and the concrete portals going up, there's really strong interest from a range of operators, both new to town and some of the existing guys [in Rotorua] are actually building and expanding."
He said some were well-known New Zealand brands.
"What we are seeing is the drawing card of Kmart is attracting a similar sort of tenant that is on other sites like you'd find at Bethlehem and Te Rapa."
The tenants would be convenience retail and some food premises, he said. They didn't include fashion retail.
Mr Faulkner said the area would soon get a "variation of the name" Trade Central that better reflected the development.
He said drainage was being improved immediately in front of the development, but this area would be left clear for parking, so the shopping centre could be seen from the road.
Pukeroa Oruawhata Group has been consented to continue the development along the front of the Trade Training Unit buildings that extends about 900sq m towards Ranolf St.
Mr Faulkner said that would be a five to six-year project.
Meanwhile, he said the announcement this week of Kmart's New Zealand online business should complement the Rotorua store.
Construction continues at the Trade Central site. Photo/Ben Fraser
"There are a lot of people that yes they will buy online but they will actually come in and pick it up here. It's really a reflection of the way the market is going. In Australia there is a lot of talk about the impact and the likely entry into the market by Amazon so they are having to respond to that as well."
Kmart New Zealand country manager Jason Picard said they were looking forward to servicing Rotorua with a store and he encouraged customers to shop online until it opened.
He said recruiting for the 80 to 100 jobs would start at the end of the year and he encouraged those keen to apply to check the Kmart website for updates.
"We are looking to employ locals who hold a passion for retail and uphold the Kmart values."
Kmart launched online shopping in New Zealand on Tuesday. The retailer promises two to four-day delivery for urban addresses, opening up its catalogue for home delivery.
Not all products are available to order online yet, with Mr Picard saying sections will roll out in stages over coming months.
What to expect - 11 or 12 new retailers to open at Trade Central site before Christmas - Kmart to open by March or April next year - 80 to 100 jobs at Kmart - About another 40 to 50 jobs at the other retailers
