A worker in the area told the Bay of Plenty Times a large hedge behind the Chemist Warehouse store was on fire and a car parked near the hedge was also alight.
He said the hedge appeared "tinder dry" and the fire was travelling down it.
"The flames are at the height of the lamppost."
He said firefighters were getting the blaze under control.
Many people were standing around watching and taking photos and videos.
A retirement village resident said she saw flames "twice as high as the roof" and heard a "loud bang".
She said the flames got close to the houses and could have been a lot worse.
A young man said he had just finished work in the shopping center and he saw the flames over the roof of the building.
He came around to the back and saw the hedge on fire and said the fire was "huge".
A woman who lives on a hill nearby said she could see the flames from her house, about 500 meters away.