Warehouse hypermarkets to take on supermarkets

Come June, Warehouse shoppers can buy cauliflowers with their clothes.

Yesterday, New Zealand's largest retailer announced it would open its first hypermarket in the Auckland suburb of Mt Wellington.

The discount retailer also said it would offer food "priced competitively". With more rivals vying for New Zealanders' grocery dollars, the result could be slimmer food bills.

The concept is part of the Warehouse's $60 million plan that could see up to 15 hypermarkets on new and existing store sites within five years.

Chief executive Ian Morrice called the hypermarket a "quantum leap" for the company and New Zealanders.

"This is the first time customers in New Zealand will get this level of convenience all under one roof," he said.

The store will be the first to open in Kiwi Income Property Trust's new Sylvia Park shopping centre.

The move pits The Warehouse against Foodstuffs, owners of New World and Pak'N Save, and Progressive Enterprises, which was purchased by Australia's Woolworths last year.

The Warehouse's move into groceries comes as the company expands its range into beer, wine and prescription drugs.