Farmlands to open first store in Auckland region

A Farmlands store like this is destined for Pukekohe. Picture supplied

Hawkes Bay rural retailer Farmlands plans to open its first store in the Auckland region in November.

The Pukekohe store will target local farmers and the general public.

Farmlands, set up in 1962 by six Hawkes Bay farmers, has 30 stores selling more than 9000 lines, including animal health products, fencing, basic garden tools and gumboots.

Chief executive John Newland estimated 15 per cent of Farmlands business was generated by casual "off-the-street" customers.

Anyone can shop at the stores but Farmlands' 18,000 co-operative members get lower prices and a charge card.

Newland said the customer-owner combination gave the company an advantage over its rivals.

"In a retail business, if a customer doesn't like the service they get or isn't happy with the product range, they say, 'Stuff it, I'll just go somewhere else'. But if they are emotionally involved with the business because they are financially involved, then they say, 'This is not good enough, this is my business, I'll tell someone'. I really value that."

People join the co-operative by buying $550 of shares.

Bonus shares can be issued and about half the annual profits are rebated back to shareholders on the basis of spend.

Newland has been with Farmlands for 17 years and is looking forward to bringing rural New Zealand to Auckland.

"Most urban people in New Zealand have a rural aspiration.

"I think the local people will find it quite refreshing because we are a hands-in-the-dirt sort of business."