Kmart tipped to takeover Warehouse Birkenhead site

Kmart is expected to open a brand new store on the site of the former The Warehouse Birkenhead but remains tight-lipped on any plans.

The rival popular discount chain went on a hiring spree in June, inviting former Warehouse staff who had been made redundant from the Birkenhead store to join the Kmart business.

Australian Wesfarmers-owned Kmart set up a specific portal for the redundant Birkenhead store staff, seeking those workers to fill customer service roles in its home, kids and clothing departments, back of house and in stock replenishment positions.

"Kmart invites The Warehouse Birkenhead team members to apply for team member opportunities with Kmart across New Zealand. Kmart are sad to hear about the closure of your store and as always are willing to look at how we may be able to accommodate experienced retailers into the Kmart business," the post by the brand's ASX-listed parent company, Wesfarmers, said.

The Warehouse Birkenhead closed on July 18 after 22 years in trade. The store's 40 staff, 17 fulltime and 23 part-time, were told of the Warehouse Group's plans in early June.

The group has since announced plans to axe at least 1000 jobs, including 130 from its head office and through the closure of its Noel Leeming Henderson Clearance Centre and Tokoroa store, The Warehouse Whangaparaoa, Johnsonville and Dunedin Central stores and the Warehouse Stationery Te Awamutu store as well as Noel Leeming stores in Papanui and The Palms in Christchurch.

Birkenhead was the first Warehouse store to close after Covid-19, with the group citing poor performance over a number of years and changing shopping habits.

Kmart and The Warehouse are major competitors, both known for selling cheap goods at low prices year-round.

The Herald understands Kmart will move into the Onewa Rd store, formerly home to The Warehouse Birkenhead store.

A spokeswoman for Kmart said the company had no announcements to make when contacted for comment.

"We are always looking for new locations to bring people our everyday low prices, and that includes Birkenhead. At this time we have no announcements, however if this changes we will advise the community with a formal announcement," the spokeswoman said.

In July, The Warehouse chief executive, Pejman Okhovat, told the Herald that the Birkenhead store had been "hampered by a building that is in need of repair in a mall that hasn't had investment for many years, and the proximity to other larger shopping precincts".

The site is considered a smaller format to the retailer's traditional big-box retail store.

Kmart has been in expansion mode, opening up more stores across New Zealand over the past few years. Last year it opened a 24/7 store at Auckland's Sylvia Park shopping mall.

The Kmart owner, which also owns Bunnings and Target, earlier this year announced its plans to shut up to 167 Target stores over the next year in favour of more Kmart locations.

Wesfarmers said up to 75 Target stores would be closed and 92 would be converted into Kmart stores. Managing director Rob Scott said this would accelerate the growth of Kmart and "enhance the overall position of the Kmart Group".