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Warehouse chief executive Ian Morrice is hoping Rachel Hunter's womenswear range will help boost overall sales.
The budget retailer will carry the former lingerie and swimsuit model's new line, Rachel.
"There are customers who come in our stores to buy lots of different items on a week-to-week basis, but maybe don't see us as the natural place to buy clothing. They're not necessarily new to The Warehouse - it's encouraging our existing shoppers to shop across more of the store," Morrice said.
The recruitment of the former Mrs Rod Stewart is a coup for the Red Sheds as it attempts to introduce more upmarket offerings as part of its Design For Everyone programme.
But Hunter made the first move, approaching the retailer last year with the idea for the range.
"I could see a real gap in the New Zealand fashion market for stylish, well cut women's clothing that's also affordable," she said.
The Rachel range is the second line within the Design for Everyone programme, following the launch of a homeware range by designers Peter Reid and Graham Dickie, the force behind the Republic Home stores.
While the Red Sheds may seem a comedown for Hunter's own personal brand, the move by famous names to market their wares to everyday consumers has proven a successful model internationally.
The trend, dubbed "high-low" for featuring high-end designers offering their garments at low prices, is best exemplified by Isaac Mizrahi, who launched a special line of clothing at US discount retailer Target in 2003.
The Mizrahi Target line, which featured US$13 ($19) T-shirts and US$30 dresses, enjoyed sales of around US$300 million.
The Warehouse will be hoping to start a similar trend here. Morrice said the successful Republic Revolution homeware range will have a new summer collection, while the Rachel range - which initially features 30 pieces - will have an expanded offering.
Additional branded lines were also expected for the Design for Everyone programme, he said.
