$100m Pak’nSave biggest supermarket rising in New Zealand, right beside Woolworths

Next door, Woolworths has a smaller 4812sq m store and fewer car parks and insiders say the new Pak’nSave is one of the cleverest moves Foodstuffs North Island has made, taking on the competition with a bigger, cheaper offering directly next door.

Asked about head-to-head competition in this geographic rivalry, Rowles talks more about that from the customers’ perspective than the corporate one.

“To get a Pak’nSave next to a Woolworths with a big car park gives consumers choice. You get the full Woolworths and the full Pak’nSave assortment. The idea is customers can make a full weekly shop here with choice. We think that’s a fairly compelling offer. This is an area of mainly single-family dwellings but it’s changing with time,” Rowles said.

Hanson said New Zealand’s largest Pak’nSave - and this country’s largest supermarket - remained the Henderson store on Lincoln Rd at 8800sq m.

The new Highland Park store will be one of the biggest for Foodstuffs North Island but the largest now under construction.

Christchurch’s new Pak’nSave Papanui by Foodstuffs South Island is 6260sq m.

The single-level Highland Park building is on the prominent corner of Highland Park Dr and Aviemore Dr.

Being a store of more than 6391sq m, Rowles says, makes a huge difference to how it will be stocked and operate.

“It means you have more on the floor in easier-to-handle ways. Instead of a layer of boxes, you put a pallet on the floor.”

A Woolworths spokeswoman said that the company’s Highland Park store was being upgraded: an internal refurbishment was completed and included a new pharmacy, refrigeration with energy and sustainability efficiencies, improved bakery, produce and health and body aisles as well as four new self-checkouts.

“External refurbishments include a new direct to boot facility with five dedicated covered car parks. These are perfect for our online shoppers to remain in the comfort of their vehicles while our helpful store team loads their shopping straight in the boot. In addition, we’re building a new car park deck to double the number of spaces outside the store entrance. Our existing undercover car park is being upgraded to include a new travelator to ensure accessibility from the downstairs car park to the store,” the Woolworths spokeswoman said.

Shane Hartner’s Legacy Construction is building the new Pak’nSave supermarket and also working on the neighbouring Woolworths where refurbishments are underway.

Rowles said the new Pak’nSave would have an innovative feature: an enclosed drive-through for click-and-collect shoppers, able to take six vehicles at one time, with food loaded into vehicles in that area.

Pak’nSave Albany already has one and Pak’nSave Henderson has one as well.

All has not been plain sailing with this project. In 2019, the Herald reported how Foodstuffs claimed rival Woolworths was using “anti-competitive” tactics to block it from opening a supermarket on the site.

Woolworths disagreed, saying Foodstuffs was aware of requirements in its lease agreement that ensured its supermarket remained part of Highland Park shopping centre.

In December 2017, Foodstuffs bought Highland Park shopping centre. It took possession of the site in June 2018.

It planned to open a Pak’nSave supermarket on the property and redevelop the site but the Auckland-based supermarket operator says Woolworths is blocking progress due to a clause in the lease that restricted trade.

The lease also states disputes should be resolved through arbitration.

All that has now been resolved, meaning the new store opens just after the New Year.

Foodstuffs North Island and Foodstuffs South Island have opened 14 new or replacement stores since late 2022.

Pak’nSave Highland Park

Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.