Hunter chief executive Matt Roberts said the proliferation of La-Z-Boy's product range had delivered new potential to expand Hunter's offering and had a La-Z-Boy gallery in the Bay of Plenty region. "We will be very well-placed to offer Bay of Plenty customers a great choice of this world-class product."
Hunter northern regional manager Daryl Bonis would not disclose the amount of the investment in the leased property for reasons of commercial sensitivity, but said it represented a significant long-term investment into the area.
"Our business has grown and this region has a huge catchment area."
Hunter was now the biggest single distributor of La-Z-Boy products in New Zealand, largely because of its expansion throughout New Zealand, said Morgan's spokesman Paul Shanahan.
The Hunter store and La-Z-Boy gallery shared the same building with internal connecting doors, but were separately branded, he said. While the company still sold product into a wide range of furniture stores, the gallery concept - adopted from the US - was growing and now provided the bulk of sales in Australasia. "The model has worked very well for us," he said.
Hunter assistant manager Owen O'Callaghan said the Owen's Place location was chosen because it was developing into a furniture precinct.
Lower-cost retailer PK Furniture was expected to open nearby and a further 2000sq m space was available at the back of the Hunter shop, said Mr O'Callaghan.
"We are expecting to have a hub develop here for furniture retailers."
Mr Shanahan said until 2008 Morgan Furniture made La-Z-Boy furniture in New Zealand, but was forced to move to Thailand and China in order to remain competitive.
Much of the furniture - which now included tables, sofas and non-reclining chairs - was designed with local input in order to appeal to New Zealand tastes and houses, he said.
"But the recliner mechanism is still made by La-Z-Boy in the US because they offer a lifetime warranty on the spring," he said. "Even when they took manufacturing offshore, they wouldn't allow anyone else to make the mechanism."