Foodstuffs

Wednesday, 27 July 2016

Foodstuffs investing over $200 million in local communities

A stocktake of property developments currently underway by Foodstuffs supermarkets shows more than $200 million is being invested nationwide on new stores and store refurbishments.

Work includes the construction of seven new stores, worth around $120 million in total – four in the North Island and three in the South. Another $80 million is being spent on upgrades for 11 stores.

The four North Island stores currently being built are: PAK’nSAVE Tauriko, in Tauranga; New World Te Kuiti; New World Papakura, in South Auckland; and PAK’nSAVE Tamatea, in Napier.

Another five North Island stores have upgrades underway: PAK’nSAVE Clendon, in South Auckland; New World Willis Street, in Wellington, New World Pahiatua, New World Metro in Auckland’s CBD, and New World Orewa. Work has just finished at New World Pioneer Highway, in Palmerston North.

PAK'nSAVE Property plans

Foodstuffs (North Island) Ltd General Manager Property Development Lindsay Rowles says, it’s an exciting time for retail development in New Zealand, with multiple growth opportunities.

“Consumers are becoming more discerning about where they shop,” says Rowles. “Some want more modern facilities and a wider range of products, while others are focussed on cost savings and environmental sustainability. We are well aware of all those factors, and are investing in order to cater for these needs well into the future.”

Lindsay Rowles

Rowles, who only recently moved here from Australia after 13 years in retail property development for Woolworths and ALDI, says retailers are recognising the importance of putting customer desires at the centre of their planning, including the physical buildings they develop.

“Our stores need to reflect the needs of the customer and adapt and, if required, change to meet their needs. Critical aspects of our supermarkets such as car parks, aisles, lighting and refrigeration need to be tailored to meet the ever-changing needs of our customers. A business that truly places these needs at its heart is the one that will have true success into the future.”

As well as the work already underway, Foodstuffs North Island is planning a major overhaul of New World Papatoetoe, in south Auckland, with a resource consent application already lodged with Auckland Council. Work is due to start by winter 2017.

New World Property Plans

Meanwhile, in the South Island, three new stores are currently being built: New World Ferry Road, in east Christchurch; PAK’nSAVE Queenstown; and Four Square West Melton, west of Christchurch.

Foodstuffs (South Island) Ltd General Manager Property and Retail Development Roger Davidson says all three are due to open in spring.

“At one end of the scale is PAK’nSAVE Queenstown,” he says, “which will cover about 5500 square metres and bring New Zealand’s lowest food prices to the Queenstown-Lakes District for the first time. At the other end is Four Square West Melton, which promises to give locals greater shopping convenience.”

Roger Davidson

Five other southern stores are being refurbished: New World Halswell in south Christchurch; New World Lincoln; New World Elles Road, in Invercargill; New World Alexandra; and PAK’nSAVE Timaru.

“Overall, it amounts to a massive work programme for us,” Davidson says, “and a sign of our long-term commitment to the communities we serve.”

Newly constructed stores and those undergoing major refurbishments will all be kitted out with the latest in environmentally sustainable lighting, refrigeration and waste recycling systems.

As for the number of jobs that will be created nationwide, a figure is yet to be confirmed. But with three stores being completely new builds – PAK’nSAVE Tauriko, PAK’nSAVE Queenstown; and Four Square West Melton, west of Christchurch – at least 300-400 jobs are likely to be created.

“Part of the investment in our communities is the training and career advancement opportunities we offer our staff,” says Davidson. “We’re currently directing our spending to bricks and mortar, but once the stores are completed our owners focus moves onto ensuring they have the best people on the ground to meet our customer needs – training and development forms a strong part of this.”

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