Kmart 24/7: Switching up NZ’s retail landscape

Shoppers line up at Kmart Manukau's reopening. Photo / Sylvie Whinray

Wider aisles, bold graphics and an extended product range are some features at Kmart’s newest 24/7 store which opened last week.

Touted as the country’s largest 24-hour retail outlet, the Manukau store is the second of its kind in New Zealand after Kmart’s original all-hours venue at Sylvia Park.

New Zealand country manager Matthew Hallal said the site was redesigned based on customer feedback.

“We’ve got new bold graphic, wider aisles for our customers with wheelchairs and prams.

“We’ve gone as big as we possibly could, which is why it’s taken us a little bit longer to secure the site.”

Who’s shopping so late?

The rationale for the open-all-hours strategy was mainly the store’s location and customer demand.

“We’ve got the airport very close by and there are a lot of shift workers,” Hallal said. “We’ve got a lot of contractors that need to shop in the evening.”

Kmart, which is owned by Australian conglomerate Wesfarmers, used customer data to inform its decision.

“We saw in the trading period between 10pm and midnight that there was still an appetite to keep shopping with us in the old site.”

He said the new store is responding to customer demands for wider aisles and more space for flexible shopping.

Store manager Sharlene Goberdhan said the store’s opening hours need to keep up with the community’s busy lives.

Kmart Manukau store manager Sharlene Goberdhan and NZ Country manager Matthew Hallal. Photo / Sylvie Whinray

She said longer trading hours give parents the opportunity to grab essentials when it works for them.

“Between childcare, getting to school, picking up kids, there’s not enough time to shop,” Goberdhan said.

“We also have a lot of night shift workers around the area. There’s a huge community that does shop at night and that actually needs it.”

Goberdhan said business at the former Manukau Kmart “picks up from about 10am and goes right through to about 11 at night”.

“It’s a very large audience in Auckland. It’s entirely understandable that they’ve done this,” she said.

First Retail managing director Chris Wilkinson said Kmart is unique in how it operates.

“There are very few retailers that can deliver this model,” Wilkinson told the Herald.

Wilkinson said the operation is much simpler compared to retailers like Bunnings Warehouse, which need specialist staff to move bulky items, mix paint, cut wood and access high shelves.

“Because of self-checkout, the store can run autonomously. Kmart is one of the few businesses that can do that.

“The doctors and nurses, people working at the ports overnight and at the airport doing those late flights can go to Kmart on the way home.”

Retail crime

Customers welcomed the new hours and full product range on Kmart Manukau’s inaugural day of business, although there are some concerns about safety for both shoppers and staff.

“At least the Sylvia Park store is in the mall so it’s a bit safer,” one shopper said.

First Union general secretary Dennis Maga said the union represents Kmart workers and is working closely with the company to make sure staff and customers are equally safe.

“There is fear out there. It’s a real concern,” Maga told the Herald.

He said concerns like physical assault and verbal abuse are on the minds of Kmart staff.

“We’re working on security concerns and what security we can provide to the staff to make sure they’re comfortable.”

“Workers are concerned about ram raids and thefts. We have to sit down with the company and have ongoing discussions.”

He said the union is taking multiple steps to keep workers safe, including checking on Kmart’s health and safety policy and keeping police aware of the situation.

First Union general secretary Dennis Maga. Photo / Myles Thomas

“We’re hoping the Government will continue to help with policy,” Maga said.

He said the Government’s increased funding for retail safety is a long-term solution with its impacts “yet to be seen”.

Maga said the main move that will protect staff and customers is increasing staff at the store.

“If you’re working 24/7 and have skeleton staff, it’s not going to help.”

Wilkinson said retail crime is at the forefront of planning and building when it comes to new retail stores.

“These stores are designed to resist those types of hostile vehicle activity.

“Building bollards and pillars means they factor for those things as with all businesses these days.”

Labour market squeeze

With staff shortages rampant across healthcare, hospitality and retail squeezing the capacity of businesses, Goberdhan said finding staff “was quite challenging”.

“It’s so hard to find staff these days for many retailers.”

She said the store hired 60 extra workers for the opening including two-night management positions, but is still hiring.

“We have 160 team members in total, but we are going to need a lot more.”

“We’re working with Kmart to ensure they have enough staff, making sure they’re comfortable working dangerous hours and to make sure customers feel safe,” Maga said.

He agreed that today’s tight labour market is a “challenge”.

“Retail is not immune in labour market problem,” he said.

Maga said First Union is “in the middle of negotiations with Kmart to make sure we can help give workers liveable pay and to attract more workers”.

“We don’t want to see them close their doors to customers.”