Ruakura Superhub: Kmart opens distribution centre in Hamilton, introduces robots to stores

Tainui Group Holdings CEO Chris Joblin, Kmart CEO John Gualtieri, Heeni Katipa representing Kīngi Tūheitia, Tumuaki Hone Thompson, Tainui Group Holdings chair Hinerangi Raumati-Tu'ua and Hamilton Mayor Paula Southgate at the opening of the Kmart Distribution Centre at Hamilton's Ruakura Superhub. Photo / Danielle Zollickhofer

Kmart has opened its massive new North Island distribution centre at Hamilton’s Ruakura Superhub today, September 6.

The 40,000 square metre facility would serve as a strategic hub for Kmart’s North Island operations and was the hub’s largest occupier to date.

It included warehousing, distribution, storage, a container yard and offices, and would supply 26 Kmart stores across New Zealand, alongside the Christchurch distribution centre.

Kmart chief executive John Gualtieri said the larger, purpose-built facility would allow the company to work more efficiently and has “lots of opportunity” for years to come.

“We’re passionate about setting up for the future in New Zealand ... Our new distribution centre will enable us to improve our productivity, meaning we are creating a more reliable flow of stock into stores and into our customer’s hands.”

The Superhub was developed by Tainui Group Holdings (TGH) whose chair Hinerangi Raumati-Tu’ua described the opening of the Kmart facility as a “real boost” to the Hamilton and Waikato economies.

“It’s a major statement of confidence in our region as a distribution and logistics centre. It has provided certainty of work for many dozens of trades and sub-trades ... and there’s been strong interest from Waikato-Tainui members and the local community in the more than 100 new jobs at Kmart.”

She said it has been a busy 12 months for TGH as it had opened multiple developments, including the ACC building in Hamilton and the Cambridge Police precinct. Later this year, TGH will open the Maersk and Big Chill Distribution facilities that are also located at the Superhub.

Kmart opens its huge new 40,000 square metre distribution centre at Hamilton's Ruakura Superhub. Photo / Danielle Zollickhofer

Gualtieri added it was impressive how fast the distribution centre has taken shape.

“It’s hard to believe that a year ago, there were just four pillars and a roof. When we made the announcement... I asked: ‘Are you sure, we can get it done in a year?’ And [TGH] said yes.”

TGH chief executive Chris Joblin said the new centre offered transport efficiencies and a lower environmental impact.

“Notably, the Kmart centre’s prime position grants access to the Ruakura Inland Port, forging an eco-friendly connection to the Port of Tauranga and MetroPort in Auckland via rail freight transport lines.”

The new distribution centre will be fully operational by September 24 and has been built with an eye on sustainability, from construction materials to design and operation features.

Tumuaki Hone Thompson, Minister of Finance Grant Robertson and Kmart CEO John Gualtieri. Photo / Danielle Zollickhofer

It included solar panels that generated up to 300kW of power, rainwater harvesting, onsite stormwater treatment, electronic vehicle charging stations and bike racks.

The centre’s structure would also include low-volatile organic compound paints, led lighting, double glazing, heating, ventilation, and air conditioning systems that use low-emission refrigerants, and close to 20 per cent of the overall site is landscaped with extensive plantings.

The opening ceremony today was attended by Minister of Finance Grant Robertson, Kīngi Tūheitia’s sister Heeni Katipa, Hamilton mayor Paula Southgate, mana whenua representatives, as well as Kmart and TGH staff members.

The Government has contributed a total of $56.8 million to the Superhub development.

“It’s the best $56.8 million I ever spent because it unleashed an extraordinary potential,” Robertson said. “This development represents progress... it looks into the future.”

Mana whenua unveiled a pou, located in front of the Kmart Distribution Centre. Photo / Danielle Zollickhofer

Robertson said he was most excited about the jobs the Kmart distribution centre is going to create.

“And the partnerships. [Because] if you bring central government, local government and the private sector together, magical things will happen.”

The ceremony started with a blessing from local mana whenua from Ngāti Wairere, Ngāti Hauā, Ngāti Korokī-Kahukura, Ngāti Tamuinupō and Ngāti Mahanga who also unveiled a carved pou (pillar), located in front of the distribution centre.

Last month, TGH welcomed the first goods trains at the adjacent 9ha Ruakura Inland Port. The port is served by two 800-metre rail sidings offering seamless rail connections to the Port of Tauranga and MetroPort in Auckland.

Those ports served about 85 train services per week, and call-ins at the Ruakura Inland Port would be scaled to meet demand.

Raumati said the opening of the huge facility for Kmart marked out the Ruakura Superhub as “business ready” after four years of development and construction for the 92ha first stage of the hub, which would eventually occupy 490ha.

“It has provided certainty of work for many dozens of trades and sub-trades through the pandemic recovery period and there’s been strong interest from Waikato-Tainui members and the local community in the more than 100 new jobs at Kmart.”

Kmart announced it would introduce inventory robots to all of its New Zealand stores. Photo / Kmart

Robots for NZ stores

Kmart also announced today that it would be bringing robots to its New Zealand stores.

Kmart chief executive John Gualtieri said the robot - named Tory, would feature in all 26 of its NZ stores and was the first of its kind for New Zealand.

The self-navigating robot uses this Radio Frequency Identification technology to count all clothing, footwear and accessories in Kmart stores each day by scanning the tags on products.

”Typically working overnight, Tory gives store team members more time to focus on serving customers, while also giving them an accurate view of what products their store has and where to find them.”

He said stores would previously do a stocktake once a year but Tory could now do this every day.

“We know how much joy our products bring to our New Zealand customers, so getting the products they need into their hands as easily as possible is our highest priority. We’ve had great success rolling out our Tory robot [in Australia], and we are excited to bring this technology to each of our New Zealand stores.”

The name Tory is short for inventory.

He said customers might not always see Tory roaming around the shop floor but they could expect to see improved availability of products in the stores.