Hamilton hub the start as Kmart eyes big growth in New Zealand – Stuff

New Zealand can expect to see four new Kmarts open their doors this year and the new Hamilton hub form a great platform for the future.

Thats according to Kmart Australia and New Zealand chief executive John Gualtieri.

Gualtieri was speaking to Stuff ahead of the official opening on Thursday of the Ruakura Superhub, home to their new distribution centre which itself will begin operation this time next year.

Gualtieri said he sees a long future for the company, both in Hamilton and New Zealand as a whole.

READ MORE:* Chris Joblin on leading a billion-dollar NZ firm that feels like a family-run business* Tainui's superhub titan set to supercharge New Zealand economy* Ruakura Superhub 'exactly what we need', says visiting minister Stuart Nash * Ruakura Superhub on track for opening in early 2022

CHRISTEL YARDLEY/STUFF

Waikato-Tainui sees the Ruakura Superhub as "a centrepiece" in its intergenerational wealth creation strategy, Te Arataura chairperson Linda Te Aho says. (This video was first published on November 5, 2021.)

Its this long-term growth strategy that helped pave the way for their distribution hub shifting from Auckland to Hamilton.

Kmart New Zealand is a growth business for us, he said.

We did a review of whats required for our business over the next couple of decades and, as we did that assessment, we realised we needed a facility that would deliver significant growth in volumes over the coming decades.

That search took them to the Tainui Group Holdings development, which also includes logistics giant Maersk, Big Chill Distribution and the PBT Group amongst its tenants.

Gualtieri said the site ticked boxes for location and rail links, something he said would help the retail giant reduce its carbon emissions.

The relationship with Tainui also proved key.

With Kmart weve got a sense of community, Tainui also has a sense of community, shared visions, values, so we kind of landed in Hamilton. Its a great place.

He said the company has experience of working alongside iwi groups and mana whenua already - it opened its first New Zealand outlet in 1988 - but he said he still found much to enjoy getting to know more about tikanga Mori.

TOM LEE/STUFF

Work progresses at Ruakura inland port, where Kmart will relocate its North Island distribution centre.

He said the company would open an Ashburton outlet on October 20 this year, and promised at least four new stores this year on top of their existing 25, though he declined to be drawn on specifics such as locations.

Three or four within the next year youll see opening up in New Zealand, he said.

We see continual growth of the New Zealand market.

He said he isnt fazed about competitors like Ikea and Costco making moves into New Zealand either. In fact, the exact opposite.

I think competition is very good. It makes you a better retailer, makes you think and be more focused about what we do, he said.

Weve got growth plans for Kmart New Zealand in both the North and South Islands for many, many years to come, so I like competition. It makes Kmart that bit sharper.

He said their primary role is: Make everyday life brighter for our customers.

Benn Bathgate/Stuff

Gualtieri said hed never seen lines at Kmart in Australia like Ive seen in New Zealand for new stores. Pictured are people queueing at 6.45am in Rotoruas in 2018.

He said he thinks that philosophy has struck a chord in New Zealand too, especially when asked about the reaction to their stores.

He may have another reason for his confidence in the face of potential competition too.

When Kmarts Rotorua outlet opened in 2018, for example, people began queueing 12 hours ahead of its opening time.

Asked for a view on that type of reaction its the only time Gualtieri, as polished as you would expect a corporate leader to be, pauses to consider his answer.

Ive never seen lines at Kmart in Australia like Ive seen in New Zealand, he said.

When we open up stores in New Zealand the whole community come out in force. They are amazing.

He said they never offer opening day discounts either, so it isnt the scramble for a bargain that drives this devotion.

It tells you Kmart is a recognised brand in New Zealand, a wanted brand.

He believes the pricing structure, especially in these inflationary times, would help secure Kmarts place in New Zealand.

Cents make a difference [now], and we do everything we can to hold our prices.

SUPPLIED

Tainui Group Holdings chairperson Hinerangi Raumati-Tu'ua said the development would create long-term economic benefits for Hamilton, the region and beyond.

He said they were still seeing some supply chain issues from the Covid-19 pandemic, particularly due to ongoing lockdowns in China, but that their contingency plans have put them in a better position than the last 12 to 18 months.

Customers can still enter an outlet and find what theyre looking for, he said.

Unsurprisingly, Gualtieri isnt the only one waxing lyrical about the potential for the Raukura Superhub.

Ruakura Superhub is a super-sized project that will continue to create the sustainable economic benefits that go towards funding important social development, cultural, and environmental programmes for current and future generations of Waikato-Tainui, said Tainui Group Holdings chair Hinerangi Raumati-Tuua.

She said the development would extend benefits to Hamilton, the wider region and country.

Commerce, jobs, efficiencies, homes, and environmental gains will all come from in fact are already coming from Ruakura Superhub.

Go here to see the original:

Hamilton hub the start as Kmart eyes big growth in New Zealand - Stuff