Progressive revamps site as national hub

Upgrades to the Wiri site will be completed early next year. Photo / Supplied

Supermarket giant Progressive Enterprises is redeveloping a 15.5ha Wiri site to be home to a revamped $45 million warehouse.

Peter Smith, Progressive's managing director, said construction work on the property at 60 Kerrs Rd started in March.

Progressive owns the site but has not distributed groceries from there for years.

Instead, it has been sub-leasing part of the big existing warehouse to two retailers: Dick Smith Electronics and Ingram Mico.

Those two businesses have now shifted to two other sites, leaving the grocery giant space to revamp its operations.

The interior of the entire warehousing area on the site is being gutted for Progressive's purposes.

Racking is being erected for slower-moving grocery items such as cereals and packaged goods that do not need refrigeration. All electrical and plumbing services on the site are being upgraded.

The docking area is being shifted to the eastern side of the site and the truck entrance moved from Druces Rd to Kerrs Rd. Truck and staff vehicle movements will be separated to improve safety and new on-site stormwater retention ponds are being developed. Work is due to finish in the first quarter of next year. The new distribution centre will be 26,000sq m and will service 267 stores.

Groceries will be distributed nationally from the new centre.

Smith said that at the moment, distribution centres in Mangere, Palmerston North and Christchurch were used but operations would change once Kerrs Rd was finished.

"Once Progressive Enterprises has completed the development of the Auckland national distribution centre, the Mangere, Palmerston North and Christchurch distribution centres will service their local regions with fast-moving goods." Purpose-built warehouses had been developed in the Manukau area for Dick Smith and Ingram Mico, he said.

ING Property Trust developed a $2 million warehouse for Dick Smith and Goodman Property Trust developed a $12.7 million warehouse for Ingram Mico.

Changes for the three businesses had generated a financial investment of about $60 million in the Manukau region, he said, a move welcomed by Manukau Mayor Len Brown.