HAMILTON
Kmart New Zealand will move its distribution centre from Wiri, South Auckland, to the Ruakura Superhub.
The retail giant announced yesterday that it will open a new 40,000 sqm distribution centre including warehousing, distribution, storage, a container yard and an office facility in Hamilton.
The new facility will be on nine hectares in the superhub's logistics area and is scheduled to be operational late next year.
This article was originally published by The Waikato Herald on July 22, 2023.
Kmart chief executive officer John Gualtieri said the company is delighted to work with Tainui Group Holdings (TGH) as both businesses share a "strong sense of community".
"Moving to a larger, purpose-built facility in the high-profile Ruakura Superhub will allow us to improve availability for customers and meet future business needs, through improved productivity, reliable flow of stock to stores and shipment diversification."
Tainui Group Holdings chair Hinerangi Raumati-Tu'ua said the partnership will also unlock economic benefits for Hamilton.
"Kmart is a global leader in the retail industry and their decision to locate at Ruakura will also create further employment opportunities in the Waikato, including for our iwi members, and we are committed to working with Kmart to create a pathway for this."
The new distribution centre is set to provide more than 100 jobs once operational.
While Kmart will close the distribution centre in Wiri after the new Hamilton facility is up and running, all existing Kmart team members will be offered a role at the new site.
Until then, the Wiri facility remains in operation and continues to service Kmart's customers across its 25 New Zealand stores and expansive online store.
Gualtieri said: "Kmart is confident that, along with our Christchurch distribution centre servicing the South Island, the new [distribution centre] in Hamilton will ensure the business is well-placed to efficiently service our stores and customers across New Zealand and allow for further growth."
The new distribution centre will benefit from direct access to the Ruakura Inland Port which will provide rail access to the Port of Tauranga, minimising road transport costs and reducing carbon emissions.
Chief executive of Tainui Group Holdings Chris Joblin said the distribution centre is going to be one of the largest buildings in the country.
"Alongside other global and national players, this move endorses Ruakura and the region as the home of logistics. It will bring great economic benefits for the Waikato and New Zealand."
Kmart engaged global supply chain and business transformation consultancy, TMX, to lead the procurement of a new facility. Tainui Group Holdings will develop, build and lease back the distribution centre.
TMX director of property (New Zealand) Sam Smith said: "The Ruakura Superhub is a prime location for business. The facility will incorporate cutting-edge technology including autonomous mobile robot [AMR] technology."
With the retailing landscape changing as a result of Covid-19 and consumer preferences, the investment in a new bespoke, custom-built warehouse will enable Kmart to distribute product via multiple channels.
The facility will be developed in line with the Greenstar 4 sustainability rating. Sustainability features of the new distribution centre will include solar panels generating up to 300kW of power, rainwater harvesting, on-site stormwater treatment, electronic vehicle charging stations and bike racks. Close to 20 per cent of the overall site will be landscaped.
Alongside the central Government, Hamilton City Council is a key investment partner in Ruakura. The council has been involved in a number of processes around the superhub, including planning and delivering enabling infrastructure.
Mayor Paula Southgate said having Kmart as a tenant highlights the importance of the superhub initiative.
"We want Hamilton to be a place of economic opportunity for everyone ... Together [with TGH] we've worked hard to help build Hamilton's reputation as a great place to do business and we're seeing that reflected in major decisions being taken by large corporates.
"Hamilton is becoming a major logistics hub for New Zealand and a growing centre for commerce and this is further proof of that."
About the Ruakura Superhub
The overall 490ha Superhub will feature a 30ha inland port, a logistics hub, as well as retail and residential offerings. The 92ha first stage of the hub, as well as the first 17ha of the inland port, are set to open later this year.
Refrigerated freight network operator Big Chill Distribution announced in February that it will build a state-of-the-art 13,000sq m cold storage facility at the Ruakura Superhub.
In May, global shipping and integrated logistics company Maersk also signed up as a tenant leasing 4.5ha in the logistics hub and building a 16,000sq m cold-store facility which is set to start operation late next year.
At 490ha, Ruakura Superhub, which is recognised by the Government as a project of national significance, is one of New Zealand's largest developments. It spans logistics, industrial, retail and residential development areas. Located at an emerging "sweet spot" for New Zealand's supply chain, it will be anchored by a 30ha inland port, with the first 17ha of this also set to open later this year.
Other previously confirmed partners and tenants include the Port of Tauranga, PBT Express Freight Network and fuel provider Waitomo Group.