Building owner, developer and Otago Land Group Ltd director Martin Dippie said the demolition of some parts of the building was almost complete and he was now focusing on progressing various consents, building approvals and tendering documents.
"We hope to get under way with construction in the next couple of weeks," he said.
"It will be an extension of the existing building."
The McBride St end of the building had been removed to make way for a large two-storey inwards goods storage area, and the Macandrew Rd end of the building would also be extended, Mr Dippie said.
"We’re using the existing foundation and structural steel — it’s a new building being built over the top of the old building — so it’s slightly more than a refurbishment.
"It’s being built to Australian specifications. It’s all going to have new walls, new ceilings, new roof, new wiring and lighting, a new facade and all new facilities.
"A new entrance-way will also be built.
It’s quite substantial. It’s a multimillion-dollar refurbishment," he said.
Mr Dippie was pleased with the progress made on the build so far.
A likely opening date could not be confirmed until the middle of this year, but it was hoped it would be completed and ready to open early next year, he said.
The new store will stock the full Kmart range, and more than 100 people are expected to be employed there.
Kmart closed its Meridian Mall store after the Covid-19 lockdown in 2020, citing concerns about required earthquake strengthening needed for its building.
The international retail giant’s intentions about whether it would return remained unknown until about October last year.
During its absence from the city, shoppers’ interest in Kmart’s return had been intense, Mr Dippie said.
"It’s certainly creating a lot of interest.
"Gee whizz, I wish I had a dollar for every person I’ve heard talking about Kmart coming back," he said.
